Correlation Between Great Sun and China Securities
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By analyzing existing cross correlation between Great Sun Foods Co and China Securities 800, you can compare the effects of market volatilities on Great Sun and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and China Securities.
Diversification Opportunities for Great Sun and China Securities
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and China is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Great Sun i.e., Great Sun and China Securities go up and down completely randomly.
Pair Corralation between Great Sun and China Securities
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 2.99 times more return on investment than China Securities. However, Great Sun is 2.99 times more volatile than China Securities 800. It trades about 0.01 of its potential returns per unit of risk. China Securities 800 is currently generating about -0.02 per unit of risk. If you would invest 493.00 in Great Sun Foods Co on October 16, 2024 and sell it today you would lose (30.00) from holding Great Sun Foods Co or give up 6.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. China Securities 800
Performance |
| Timeline |
Great Sun and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Great Sun Foods Co
Pair trading matchups for Great Sun
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Great Sun and China Securities
The main advantage of trading using opposite Great Sun and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Great Sun vs. ROPEOK Technology Group | Great Sun vs. Smartgiant Technology Co | Great Sun vs. Kuangda Technology Group | Great Sun vs. Iat Automobile Technology |
| China Securities vs. Eastroc Beverage Group | China Securities vs. Sinomach General Machinery | China Securities vs. Hongrun Construction Group | China Securities vs. Great Sun Foods Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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