Correlation Between Great Sun and Sinomach Automobile
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By analyzing existing cross correlation between Great Sun Foods Co and Sinomach Automobile Co, you can compare the effects of market volatilities on Great Sun and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Sinomach Automobile.
Diversification Opportunities for Great Sun and Sinomach Automobile
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and Sinomach is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Great Sun i.e., Great Sun and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Great Sun and Sinomach Automobile
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.25 times more return on investment than Sinomach Automobile. However, Great Sun is 1.25 times more volatile than Sinomach Automobile Co. It trades about 0.02 of its potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.01 per unit of risk. If you would invest 463.00 in Great Sun Foods Co on October 17, 2024 and sell it today you would earn a total of 0.00 from holding Great Sun Foods Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Sinomach Automobile Co
Performance |
| Timeline |
| Great Sun Foods |
| Sinomach Automobile |
Great Sun and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Sinomach Automobile
The main advantage of trading using opposite Great Sun and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Great Sun vs. ROPEOK Technology Group | Great Sun vs. Smartgiant Technology Co | Great Sun vs. Kuangda Technology Group | Great Sun vs. Iat Automobile Technology |
| Sinomach Automobile vs. Ye Chiu Metal | Sinomach Automobile vs. Sino Platinum Metals Co | Sinomach Automobile vs. Shanghai Ziyan Foods | Sinomach Automobile 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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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