Correlation Between Great Sun and Shenwu Energy
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By analyzing existing cross correlation between Great Sun Foods Co and Shenwu Energy Saving, you can compare the effects of market volatilities on Great Sun and Shenwu Energy 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 Shenwu Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Shenwu Energy.
Diversification Opportunities for Great Sun and Shenwu Energy
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Great and Shenwu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Shenwu Energy Saving in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenwu Energy Saving 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 Shenwu Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenwu Energy Saving has no effect on the direction of Great Sun i.e., Great Sun and Shenwu Energy go up and down completely randomly.
Pair Corralation between Great Sun and Shenwu Energy
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate about the same return on investment as Shenwu Energy Saving. However, Great Sun is 1.06 times more volatile than Shenwu Energy Saving. It trades about 0.09 of its potential returns per unit of risk. Shenwu Energy Saving is currently producing about 0.09 per unit of risk. If you would invest 217.00 in Shenwu Energy Saving on October 7, 2024 and sell it today you would earn a total of 92.00 from holding Shenwu Energy Saving or generate 42.4% 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. Shenwu Energy Saving
Performance |
| Timeline |
| Great Sun Foods |
| Shenwu Energy Saving |
Great Sun and Shenwu Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Shenwu Energy
The main advantage of trading using opposite Great Sun and Shenwu Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Shenwu Energy 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 Shenwu Energy will offset losses from the drop in Shenwu Energy's long position.| Great Sun vs. China Petroleum Chemical | Great Sun vs. PetroChina Co Ltd | Great Sun vs. China Railway Construction | Great Sun vs. China Mobile Limited |
| Shenwu Energy vs. BeiGene | Shenwu Energy vs. G bits Network Technology | Shenwu Energy vs. China Mobile Limited | Shenwu Energy vs. Gansu Jiu Steel |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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