Correlation Between Great Sun and Gan Yuan
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By analyzing existing cross correlation between Great Sun Foods Co and Gan Yuan Foods, you can compare the effects of market volatilities on Great Sun and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Gan Yuan.
Diversification Opportunities for Great Sun and Gan Yuan
Almost no diversification
The 3 months correlation between Great and Gan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Great Sun i.e., Great Sun and Gan Yuan go up and down completely randomly.
Pair Corralation between Great Sun and Gan Yuan
Assuming the 90 days trading horizon Great Sun Foods Co is expected to under-perform the Gan Yuan. In addition to that, Great Sun is 1.97 times more volatile than Gan Yuan Foods. It trades about -0.04 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.19 per unit of volatility. If you would invest 7,220 in Gan Yuan Foods on September 1, 2024 and sell it today you would earn a total of 638.00 from holding Gan Yuan Foods or generate 8.84% 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. Gan Yuan Foods
Performance |
| Timeline |
| Great Sun Foods |
| Gan Yuan Foods |
Great Sun and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Gan Yuan
The main advantage of trading using opposite Great Sun and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Shenzhen Hifuture Electric | Great Sun vs. Tianjin Realty Development | Great Sun vs. Shenyang Huitian Thermal |
| Gan Yuan vs. Nanjing Putian Telecommunications | Gan Yuan vs. Shenzhen Hifuture Electric | Gan Yuan vs. Tianjin Realty Development | Gan Yuan vs. Shenyang Huitian Thermal |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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