Correlation Between Great Sun and Hunan Investment
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By analyzing existing cross correlation between Great Sun Foods Co and Hunan Investment Group, you can compare the effects of market volatilities on Great Sun and Hunan Investment 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 Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Hunan Investment.
Diversification Opportunities for Great Sun and Hunan Investment
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Hunan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment 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 Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Great Sun i.e., Great Sun and Hunan Investment go up and down completely randomly.
Pair Corralation between Great Sun and Hunan Investment
Assuming the 90 days trading horizon Great Sun Foods Co is expected to under-perform the Hunan Investment. But the stock apears to be less risky and, when comparing its historical volatility, Great Sun Foods Co is 1.42 times less risky than Hunan Investment. The stock trades about -0.02 of its potential returns per unit of risk. The Hunan Investment Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 530.00 in Hunan Investment Group on September 12, 2024 and sell it today you would earn a total of 68.00 from holding Hunan Investment Group or generate 12.83% 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. Hunan Investment Group
Performance |
| Timeline |
| Great Sun Foods |
| Hunan Investment |
Great Sun and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Hunan Investment
The main advantage of trading using opposite Great Sun and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Great Sun vs. Eit Environmental Development | Great Sun vs. Shandong Iron and | Great Sun vs. Gansu Jiu Steel | Great Sun vs. Bomesc Offshore Engineering |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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