Correlation Between Sichuan Hebang and Gan Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Gan Yuan Foods, you can compare the effects of market volatilities on Sichuan Hebang 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 Sichuan Hebang with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Gan Yuan.
Diversification Opportunities for Sichuan Hebang and Gan Yuan
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sichuan and Gan is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology 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 Sichuan Hebang 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 Sichuan Hebang Biotechnology 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 Sichuan Hebang i.e., Sichuan Hebang and Gan Yuan go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Gan Yuan
Assuming the 90 days trading horizon Sichuan Hebang Biotechnology is expected to under-perform the Gan Yuan. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Hebang Biotechnology is 1.71 times less risky than Gan Yuan. The stock trades about -0.65 of its potential returns per unit of risk. The Gan Yuan Foods is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 8,816 in Gan Yuan Foods on October 14, 2024 and sell it today you would lose (387.00) from holding Gan Yuan Foods or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Gan Yuan Foods
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Gan Yuan Foods |
Sichuan Hebang and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Gan Yuan
The main advantage of trading using opposite Sichuan Hebang and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang 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.| Sichuan Hebang vs. Dymatic Chemicals | Sichuan Hebang vs. JCHX Mining Management | Sichuan Hebang vs. Miracll Chemicals Co | Sichuan Hebang vs. Shenzhen Noposion Agrochemicals |
| Gan Yuan vs. Tongyu Communication | Gan Yuan vs. Sunwave Communications Co | Gan Yuan vs. Sichuan Hebang Biotechnology | Gan Yuan vs. Wuhan Hvsen Biotechnology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |