Correlation Between Great-Sun Foods and Metro Investment
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By analyzing existing cross correlation between Great Sun Foods Co and Metro Investment Development, you can compare the effects of market volatilities on Great-Sun Foods and Metro Investment 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 Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-Sun Foods and Metro Investment.
Diversification Opportunities for Great-Sun Foods and Metro Investment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great-Sun and Metro is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev 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 Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Great-Sun Foods i.e., Great-Sun Foods and Metro Investment go up and down completely randomly.
Pair Corralation between Great-Sun Foods and Metro Investment
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.47 times more return on investment than Metro Investment. However, Great-Sun Foods is 1.47 times more volatile than Metro Investment Development. It trades about 0.06 of its potential returns per unit of risk. Metro Investment Development is currently generating about -0.26 per unit of risk. If you would invest 430.00 in Great Sun Foods Co on November 3, 2024 and sell it today you would earn a total of 11.00 from holding Great Sun Foods Co or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Metro Investment Development
Performance |
| Timeline |
| Great Sun Foods |
| Metro Investment Dev |
Great-Sun Foods and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-Sun Foods and Metro Investment
The main advantage of trading using opposite Great-Sun Foods and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-Sun Foods position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment'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 |
| Metro Investment vs. HaiXin Foods Co | Metro Investment vs. De Rucci Healthy | Metro Investment vs. Yankershop Food Co | Metro Investment vs. Guosheng Financial Holding |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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