Correlation Between Great-Sun Foods and Guangdong Jinma
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By analyzing existing cross correlation between Great Sun Foods Co and Guangdong Jinma Entertainment, you can compare the effects of market volatilities on Great-Sun Foods and Guangdong Jinma 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 Foods with a short position of Guangdong Jinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-Sun Foods and Guangdong Jinma.
Diversification Opportunities for Great-Sun Foods and Guangdong Jinma
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great-Sun and Guangdong is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Guangdong Jinma Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinma Ente and Great-Sun Foods 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 Guangdong Jinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinma Ente has no effect on the direction of Great-Sun Foods i.e., Great-Sun Foods and Guangdong Jinma go up and down completely randomly.
Pair Corralation between Great-Sun Foods and Guangdong Jinma
Assuming the 90 days trading horizon Great-Sun Foods is expected to generate 4.21 times less return on investment than Guangdong Jinma. In addition to that, Great-Sun Foods is 1.13 times more volatile than Guangdong Jinma Entertainment. It trades about 0.06 of its total potential returns per unit of risk. Guangdong Jinma Entertainment is currently generating about 0.26 per unit of volatility. If you would invest 1,449 in Guangdong Jinma Entertainment on November 3, 2024 and sell it today you would earn a total of 215.00 from holding Guangdong Jinma Entertainment or generate 14.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Guangdong Jinma Entertainment
Performance |
| Timeline |
| Great Sun Foods |
| Guangdong Jinma Ente |
Great-Sun Foods and Guangdong Jinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-Sun Foods and Guangdong Jinma
The main advantage of trading using opposite Great-Sun Foods and Guangdong Jinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-Sun Foods position performs unexpectedly, Guangdong Jinma 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 Guangdong Jinma will offset losses from the drop in Guangdong Jinma's long position.| Great-Sun Foods vs. Jiaozuo Wanfang Aluminum | Great-Sun Foods vs. Ye Chiu Metal | Great-Sun Foods vs. ZYF Lopsking Aluminum | Great-Sun Foods vs. Sihui Fuji Electronics |
| Guangdong Jinma vs. Hefei Metalforming Mach | Guangdong Jinma vs. Beijing Bewinner Communications | Guangdong Jinma vs. Dr Peng Telecom | Guangdong Jinma vs. Anhui Tongguan Copper |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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