Correlation Between Great Sun and Shenzhen Centralcon
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By analyzing existing cross correlation between Great Sun Foods Co and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Great Sun and Shenzhen Centralcon 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 Great Sun with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Shenzhen Centralcon.
Diversification Opportunities for Great Sun and Shenzhen Centralcon
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Shenzhen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Great Sun 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 Great Sun Foods Co are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Great Sun i.e., Great Sun and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Great Sun and Shenzhen Centralcon
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.02 times more return on investment than Shenzhen Centralcon. However, Great Sun is 1.02 times more volatile than Shenzhen Centralcon Investment. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about 0.05 per unit of risk. If you would invest 467.00 in Great Sun Foods Co on September 21, 2024 and sell it today you would earn a total of 20.00 from holding Great Sun Foods Co or generate 4.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Great Sun Foods |
| Shenzhen Centralcon |
Great Sun and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Shenzhen Centralcon
The main advantage of trading using opposite Great Sun and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Tianjin Realty Development | Great Sun vs. Kangyue Technology Co | Great Sun vs. Shenzhen Hifuture Electric |
| Shenzhen Centralcon vs. Xinjiang Communications Construction | Shenzhen Centralcon vs. Great Sun Foods Co | Shenzhen Centralcon vs. New Hope Dairy | Shenzhen Centralcon vs. Hubei Yingtong Telecommunication |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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