Correlation Between Great Sun and Jiangsu Yanghe
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By analyzing existing cross correlation between Great Sun Foods Co and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Great Sun and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Jiangsu Yanghe.
Diversification Opportunities for Great Sun and Jiangsu Yanghe
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great and Jiangsu is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Great Sun i.e., Great Sun and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Great Sun and Jiangsu Yanghe
Assuming the 90 days trading horizon Great Sun Foods Co is expected to under-perform the Jiangsu Yanghe. In addition to that, Great Sun is 2.56 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.05 of its total potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.04 per unit of volatility. If you would invest 8,425 in Jiangsu Yanghe Brewery on September 26, 2024 and sell it today you would lose (101.00) from holding Jiangsu Yanghe Brewery or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Great Sun Foods |
| Jiangsu Yanghe Brewery |
Great Sun and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Jiangsu Yanghe
The main advantage of trading using opposite Great Sun and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Great Sun vs. Ming Yang Smart | Great Sun vs. 159681 | Great Sun vs. 159005 | Great Sun vs. Loctek Ergonomic Technology |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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