Correlation Between Gem Year and Gan Yuan
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By analyzing existing cross correlation between Gem Year Industrial Co and Gan Yuan Foods, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Gan Yuan.
Diversification Opportunities for Gem Year and Gan Yuan
Almost no diversification
The 3 months correlation between Gem and Gan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co 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 Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Gan Yuan go up and down completely randomly.
Pair Corralation between Gem Year and Gan Yuan
Assuming the 90 days trading horizon Gem Year is expected to generate 1.82 times less return on investment than Gan Yuan. But when comparing it to its historical volatility, Gem Year Industrial Co is 1.13 times less risky than Gan Yuan. It trades about 0.02 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,720 in Gan Yuan Foods on September 13, 2024 and sell it today you would earn a total of 1,473 from holding Gan Yuan Foods or generate 21.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Gan Yuan Foods
Performance |
| Timeline |
| Gem Year Industrial |
| Gan Yuan Foods |
Gem Year and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Gan Yuan
The main advantage of trading using opposite Gem Year and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Qtone Education Group | Gem Year vs. Zhuhai Comleader Information | Gem Year vs. Chinese Universe Publishing | Gem Year vs. Beijing Jiaman Dress |
| Gan Yuan vs. Linewell Software Co | Gan Yuan vs. Glodon Software Co | Gan Yuan vs. Gem Year Industrial Co | Gan Yuan vs. Guangdong Jingyi Metal |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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