Correlation Between Long Yuan and Great Sun
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By analyzing existing cross correlation between Long Yuan Construction and Great Sun Foods Co, you can compare the effects of market volatilities on Long Yuan and Great Sun and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Long Yuan with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Great Sun.
Diversification Opportunities for Long Yuan and Great Sun
Poor diversification
The 3 months correlation between Long and Great is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods and Long Yuan is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Long Yuan Construction are associated (or correlated) with Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Long Yuan i.e., Long Yuan and Great Sun go up and down completely randomly.
Pair Corralation between Long Yuan and Great Sun
Assuming the 90 days trading horizon Long Yuan Construction is expected to under-perform the Great Sun. But the stock apears to be less risky and, when comparing its historical volatility, Long Yuan Construction is 1.32 times less risky than Great Sun. The stock trades about -0.02 of its potential returns per unit of risk. The Great Sun Foods Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 525.00 in Great Sun Foods Co on October 27, 2024 and sell it today you would lose (82.00) from holding Great Sun Foods Co or give up 15.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Yuan Construction vs. Great Sun Foods Co
Performance |
| Timeline |
| Long Yuan Construction |
| Great Sun Foods |
Long Yuan and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and Great Sun
The main advantage of trading using opposite Long Yuan and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan position performs unexpectedly, Great Sun can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Great Sun will offset losses from the drop in Great Sun's long position.| Long Yuan vs. Shanghai Broadband Technology | Long Yuan vs. Liaoning Chengda Biotechnology | Long Yuan vs. Ningbo MedicalSystem Biotechnology | Long Yuan vs. Chengdu Xinzhu RoadBridge |
| Great Sun vs. Kweichow Moutai Co | Great Sun vs. Contemporary Amperex Technology | Great Sun vs. G bits Network Technology | Great Sun vs. Beijing Roborock Technology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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