Correlation Between Great Sun and Kuangda Technology
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By analyzing existing cross correlation between Great Sun Foods Co and Kuangda Technology Group, you can compare the effects of market volatilities on Great Sun and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Kuangda Technology.
Diversification Opportunities for Great Sun and Kuangda Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Kuangda is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Great Sun i.e., Great Sun and Kuangda Technology go up and down completely randomly.
Pair Corralation between Great Sun and Kuangda Technology
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.49 times more return on investment than Kuangda Technology. However, Great Sun is 1.49 times more volatile than Kuangda Technology Group. It trades about 0.01 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about 0.0 per unit of risk. If you would invest 493.00 in Great Sun Foods Co on October 16, 2024 and sell it today you would lose (45.00) from holding Great Sun Foods Co or give up 9.13% 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. Kuangda Technology Group
Performance |
| Timeline |
| Great Sun Foods |
| Kuangda Technology |
Great Sun and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Kuangda Technology
The main advantage of trading using opposite Great Sun and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| Great Sun vs. CIMC Vehicles Co | Great Sun vs. Dongfeng Automobile Co | Great Sun vs. Bank of Communications | Great Sun vs. Guangzhou Haige Communications |
| Kuangda Technology vs. Vanfund Urban Investment | Kuangda Technology vs. Great Sun Foods Co | Kuangda Technology vs. Metro Investment Development | Kuangda Technology vs. Anji Foodstuff 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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