Correlation Between Great Sun and CIMC Vehicles
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By analyzing existing cross correlation between Great Sun Foods Co and CIMC Vehicles Co, you can compare the effects of market volatilities on Great Sun and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and CIMC Vehicles.
Diversification Opportunities for Great Sun and CIMC Vehicles
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great and CIMC is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Great Sun i.e., Great Sun and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Great Sun and CIMC Vehicles
Assuming the 90 days trading horizon Great Sun Foods Co is expected to under-perform the CIMC Vehicles. In addition to that, Great Sun is 3.7 times more volatile than CIMC Vehicles Co. It trades about -0.22 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.59 per unit of volatility. If you would invest 987.00 in CIMC Vehicles Co on October 14, 2024 and sell it today you would lose (123.00) from holding CIMC Vehicles Co or give up 12.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. CIMC Vehicles Co
Performance |
| Timeline |
| Great Sun Foods |
| CIMC Vehicles |
Great Sun and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and CIMC Vehicles
The main advantage of trading using opposite Great Sun and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' long position.| Great Sun vs. Guangzhou Jinyi Media | Great Sun vs. GUOMAI Culture Media | Great Sun vs. Shenzhen AV Display Co | Great Sun vs. Zhongyin Babi Food |
| CIMC Vehicles vs. Gan Yuan Foods | CIMC Vehicles vs. Anji Foodstuff Co | CIMC Vehicles vs. Xiamen Jihong Package | CIMC Vehicles vs. Great Sun Foods 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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