Correlation Between Great Sun and Beijing HuaYuanYiTong
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By analyzing existing cross correlation between Great Sun Foods Co and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Great Sun and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Beijing HuaYuanYiTong.
Diversification Opportunities for Great Sun and Beijing HuaYuanYiTong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Great and Beijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Great Sun i.e., Great Sun and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Great Sun and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Great Sun is expected to generate 2.29 times less return on investment than Beijing HuaYuanYiTong. But when comparing it to its historical volatility, Great Sun Foods Co is 1.18 times less risky than Beijing HuaYuanYiTong. It trades about 0.05 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,140 in Beijing HuaYuanYiTong Thermal on September 13, 2024 and sell it today you would earn a total of 59.00 from holding Beijing HuaYuanYiTong Thermal or generate 5.18% 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. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| Great Sun Foods |
| Beijing HuaYuanYiTong |
Great Sun and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Beijing HuaYuanYiTong
The main advantage of trading using opposite Great Sun and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong's long position.| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Tianjin Realty Development | Great Sun vs. Kangyue Technology Co | Great Sun vs. Shenzhen Hifuture Electric |
| Beijing HuaYuanYiTong vs. Ming Yang Smart | Beijing HuaYuanYiTong vs. 159681 | Beijing HuaYuanYiTong vs. 159005 | Beijing HuaYuanYiTong vs. Loctek Ergonomic Technology |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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