Correlation Between Great Sun and Shandong Polymer
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By analyzing existing cross correlation between Great Sun Foods Co and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Great Sun and Shandong Polymer 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 Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Shandong Polymer.
Diversification Opportunities for Great Sun and Shandong Polymer
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Shandong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Great Sun i.e., Great Sun and Shandong Polymer go up and down completely randomly.
Pair Corralation between Great Sun and Shandong Polymer
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.46 times more return on investment than Shandong Polymer. However, Great Sun is 1.46 times more volatile than Shandong Polymer Biochemicals. It trades about -0.14 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about -0.29 per unit of risk. If you would invest 525.00 in Great Sun Foods Co on October 12, 2024 and sell it today you would lose (70.00) from holding Great Sun Foods Co or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Great Sun Foods |
| Shandong Polymer Bio |
Great Sun and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Shandong Polymer
The main advantage of trading using opposite Great Sun and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer's long position.| Great Sun vs. Industrial and Commercial | Great Sun vs. Agricultural Bank of | Great Sun vs. China Construction Bank | Great Sun vs. Bank of China |
| Shandong Polymer vs. Zijin Mining Group | Shandong Polymer vs. Wanhua Chemical Group | Shandong Polymer vs. Baoshan Iron Steel | Shandong Polymer vs. Rongsheng Petrochemical 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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