Correlation Between Great Sun and Central Plains
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By analyzing existing cross correlation between Great Sun Foods Co and Central Plains Environment, you can compare the effects of market volatilities on Great Sun and Central Plains 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 Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Central Plains.
Diversification Opportunities for Great Sun and Central Plains
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Great and Central is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Central Plains Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Envir 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 Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Envir has no effect on the direction of Great Sun i.e., Great Sun and Central Plains go up and down completely randomly.
Pair Corralation between Great Sun and Central Plains
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.81 times more return on investment than Central Plains. However, Great Sun is 1.81 times more volatile than Central Plains Environment. It trades about 0.03 of its potential returns per unit of risk. Central Plains Environment is currently generating about 0.04 per unit of risk. If you would invest 488.00 in Great Sun Foods Co on September 14, 2024 and sell it today you would earn a total of 63.00 from holding Great Sun Foods Co or generate 12.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Central Plains Environment
Performance |
| Timeline |
| Great Sun Foods |
| Central Plains Envir |
Great Sun and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Central Plains
The main advantage of trading using opposite Great Sun and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' 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 |
| Central Plains vs. Lutian Machinery Co | Central Plains vs. China Longyuan Power | Central Plains vs. PetroChina Co Ltd | Central Plains vs. Bank of China |
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.
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