Correlation Between Great Sun and Unigroup Guoxin
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By analyzing existing cross correlation between Great Sun Foods Co and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Great Sun and Unigroup Guoxin 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 Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Unigroup Guoxin.
Diversification Opportunities for Great Sun and Unigroup Guoxin
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great and Unigroup is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Unigroup Guoxin Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigroup Guoxin Micr 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 Unigroup Guoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigroup Guoxin Micr has no effect on the direction of Great Sun i.e., Great Sun and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Great Sun and Unigroup Guoxin
Assuming the 90 days trading horizon Great Sun is expected to generate 2.25 times less return on investment than Unigroup Guoxin. But when comparing it to its historical volatility, Great Sun Foods Co is 1.03 times less risky than Unigroup Guoxin. It trades about 0.1 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 5,861 in Unigroup Guoxin Microelectronics on December 11, 2024 and sell it today you would earn a total of 1,196 from holding Unigroup Guoxin Microelectronics or generate 20.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Great Sun Foods |
| Unigroup Guoxin Micr |
Great Sun and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Unigroup Guoxin
The main advantage of trading using opposite Great Sun and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Unigroup Guoxin 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 Unigroup Guoxin will offset losses from the drop in Unigroup Guoxin's long position.| Great Sun vs. GKHT Medical Technology | Great Sun vs. Sanxiang Advanced Materials | Great Sun vs. Fuda Alloy Materials | Great Sun vs. GRIPM Advanced Materials |
| Unigroup Guoxin vs. Hengli Industrial Development | Unigroup Guoxin vs. Gem Year Industrial Co | Unigroup Guoxin vs. Tibet Huayu Mining | Unigroup Guoxin vs. Fujian Nebula Electronics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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