Correlation Between Caihong Display and Gan Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Caihong Display Devices and Gan Yuan Foods, you can compare the effects of market volatilities on Caihong Display and Gan Yuan 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 Caihong Display with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Gan Yuan.
Diversification Opportunities for Caihong Display and Gan Yuan
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caihong and Gan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods and Caihong Display 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 Caihong Display Devices are associated (or correlated) with Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Caihong Display i.e., Caihong Display and Gan Yuan go up and down completely randomly.
Pair Corralation between Caihong Display and Gan Yuan
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 0.98 times more return on investment than Gan Yuan. However, Caihong Display Devices is 1.02 times less risky than Gan Yuan. It trades about 0.19 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.16 per unit of risk. If you would invest 736.00 in Caihong Display Devices on October 11, 2024 and sell it today you would earn a total of 84.00 from holding Caihong Display Devices or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Gan Yuan Foods
Performance |
| Timeline |
| Caihong Display Devices |
| Gan Yuan Foods |
Caihong Display and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Gan Yuan
The main advantage of trading using opposite Caihong Display and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Caihong Display vs. XiaMen HongXin Electron tech | Caihong Display vs. Beijing Shunxin Agriculture | Caihong Display vs. Dhc Software Co | Caihong Display vs. Holitech Technology Co |
| Gan Yuan vs. Anji Foodstuff Co | Gan Yuan vs. Caihong Display Devices | Gan Yuan vs. Shenzhen AV Display Co | Gan Yuan vs. Muyuan Foodstuff Co |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |