Correlation Between Great Sun and Gansu Huangtai
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By analyzing existing cross correlation between Great Sun Foods Co and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Great Sun and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Gansu Huangtai.
Diversification Opportunities for Great Sun and Gansu Huangtai
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Great and Gansu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Great Sun i.e., Great Sun and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Great Sun and Gansu Huangtai
Assuming the 90 days trading horizon Great Sun Foods Co is expected to under-perform the Gansu Huangtai. In addition to that, Great Sun is 1.02 times more volatile than Gansu Huangtai Wine marketing. It trades about -0.04 of its total potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.13 per unit of volatility. If you would invest 1,377 in Gansu Huangtai Wine marketing on September 1, 2024 and sell it today you would earn a total of 153.00 from holding Gansu Huangtai Wine marketing or generate 11.11% 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. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Great Sun Foods |
| Gansu Huangtai Wine |
Great Sun and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Gansu Huangtai
The main advantage of trading using opposite Great Sun and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Shenzhen Hifuture Electric | Great Sun vs. Tianjin Realty Development | Great Sun vs. Shenyang Huitian Thermal |
| Gansu Huangtai vs. Shandong Polymer Biochemicals | Gansu Huangtai vs. Ningxia Younglight Chemicals | Gansu Huangtai vs. Huatian Hotel Group | Gansu Huangtai vs. Xiandai Investment 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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