Correlation Between Great Sun and Zhejiang Kingland
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By analyzing existing cross correlation between Great Sun Foods Co and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Great Sun and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Zhejiang Kingland.
Diversification Opportunities for Great Sun and Zhejiang Kingland
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and Zhejiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Great Sun i.e., Great Sun and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Great Sun and Zhejiang Kingland
Assuming the 90 days trading horizon Great Sun Foods Co is expected to under-perform the Zhejiang Kingland. In addition to that, Great Sun is 2.9 times more volatile than Zhejiang Kingland Pipeline. It trades about -0.09 of its total potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.14 per unit of volatility. If you would invest 653.00 in Zhejiang Kingland Pipeline on August 28, 2024 and sell it today you would lose (33.00) from holding Zhejiang Kingland Pipeline or give up 5.05% 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. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Great Sun Foods |
| Zhejiang Kingland |
Great Sun and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Zhejiang Kingland
The main advantage of trading using opposite Great Sun and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Great Sun vs. China Petroleum Chemical | Great Sun vs. PetroChina Co Ltd | Great Sun vs. China State Construction | Great Sun vs. China Railway Group |
| Zhejiang Kingland vs. HaiXin Foods Co | Zhejiang Kingland vs. Juewei Food Co | Zhejiang Kingland vs. Gan Yuan Foods | Zhejiang Kingland 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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