Correlation Between Great Sun and Hainan Shuangcheng
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By analyzing existing cross correlation between Great Sun Foods Co and Hainan Shuangcheng Pharmaceut, you can compare the effects of market volatilities on Great Sun and Hainan Shuangcheng 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 Hainan Shuangcheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Hainan Shuangcheng.
Diversification Opportunities for Great Sun and Hainan Shuangcheng
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Great and Hainan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Hainan Shuangcheng Pharmaceut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Shuangcheng 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 Hainan Shuangcheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Shuangcheng has no effect on the direction of Great Sun i.e., Great Sun and Hainan Shuangcheng go up and down completely randomly.
Pair Corralation between Great Sun and Hainan Shuangcheng
Assuming the 90 days trading horizon Great Sun is expected to generate 5.74 times less return on investment than Hainan Shuangcheng. But when comparing it to its historical volatility, Great Sun Foods Co is 1.22 times less risky than Hainan Shuangcheng. It trades about 0.01 of its potential returns per unit of risk. Hainan Shuangcheng Pharmaceut is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 952.00 in Hainan Shuangcheng Pharmaceut on September 3, 2024 and sell it today you would earn a total of 1,344 from holding Hainan Shuangcheng Pharmaceut or generate 141.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Hainan Shuangcheng Pharmaceut
Performance |
| Timeline |
| Great Sun Foods |
| Hainan Shuangcheng |
Great Sun and Hainan Shuangcheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Hainan Shuangcheng
The main advantage of trading using opposite Great Sun and Hainan Shuangcheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Hainan Shuangcheng 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 Hainan Shuangcheng will offset losses from the drop in Hainan Shuangcheng's long position.| Great Sun vs. Beijing Wantai Biological | Great Sun vs. Aluminum Corp of | Great Sun vs. COL Digital Publishing | Great Sun vs. Shaanxi Meineng Clean |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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