Correlation Between Xiamen Goldenhome and Gan Yuan
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By analyzing existing cross correlation between Xiamen Goldenhome Co and Gan Yuan Foods, you can compare the effects of market volatilities on Xiamen Goldenhome 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 Xiamen Goldenhome with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Goldenhome and Gan Yuan.
Diversification Opportunities for Xiamen Goldenhome and Gan Yuan
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xiamen and Gan is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Goldenhome 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 Xiamen Goldenhome 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 Xiamen Goldenhome 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 Xiamen Goldenhome i.e., Xiamen Goldenhome and Gan Yuan go up and down completely randomly.
Pair Corralation between Xiamen Goldenhome and Gan Yuan
Assuming the 90 days trading horizon Xiamen Goldenhome is expected to generate 1.39 times less return on investment than Gan Yuan. In addition to that, Xiamen Goldenhome is 1.08 times more volatile than Gan Yuan Foods. It trades about 0.1 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.15 per unit of volatility. If you would invest 7,392 in Gan Yuan Foods on September 12, 2024 and sell it today you would earn a total of 441.00 from holding Gan Yuan Foods or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Goldenhome Co vs. Gan Yuan Foods
Performance |
| Timeline |
| Xiamen Goldenhome |
| Gan Yuan Foods |
Xiamen Goldenhome and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Goldenhome and Gan Yuan
The main advantage of trading using opposite Xiamen Goldenhome and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Goldenhome 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.| Xiamen Goldenhome vs. Lutian Machinery Co | Xiamen Goldenhome vs. PetroChina Co Ltd | Xiamen Goldenhome vs. Bank of China | Xiamen Goldenhome vs. Gansu Jiu Steel |
| Gan Yuan vs. Maxvision Technology Corp | Gan Yuan vs. Eastroc Beverage Group | Gan Yuan vs. Changchun Faway Automobile | Gan Yuan vs. ROPEOK Technology Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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