Correlation Between Great Sun and Haima Automobile
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By analyzing existing cross correlation between Great Sun Foods Co and Haima Automobile Group, you can compare the effects of market volatilities on Great Sun and Haima Automobile 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 Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Haima Automobile.
Diversification Opportunities for Great Sun and Haima Automobile
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and Haima is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile 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 Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Great Sun i.e., Great Sun and Haima Automobile go up and down completely randomly.
Pair Corralation between Great Sun and Haima Automobile
Assuming the 90 days trading horizon Great Sun is expected to generate 1.01 times less return on investment than Haima Automobile. But when comparing it to its historical volatility, Great Sun Foods Co is 1.06 times less risky than Haima Automobile. It trades about 0.17 of its potential returns per unit of risk. Haima Automobile Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 309.00 in Haima Automobile Group on August 30, 2024 and sell it today you would earn a total of 135.00 from holding Haima Automobile Group or generate 43.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Haima Automobile Group
Performance |
| Timeline |
| Great Sun Foods |
| Haima Automobile |
Great Sun and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Haima Automobile
The main advantage of trading using opposite Great Sun and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Great Sun vs. Xiangyang Automobile Bearing | Great Sun vs. Western Metal Materials | Great Sun vs. Harbin Air Conditioning | Great Sun vs. Changchun Engley Automobile |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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