Correlation Between Great Sun and Caihong Display
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By analyzing existing cross correlation between Great Sun Foods Co and Caihong Display Devices, you can compare the effects of market volatilities on Great Sun and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Caihong Display.
Diversification Opportunities for Great Sun and Caihong Display
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Great and Caihong is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Great Sun i.e., Great Sun and Caihong Display go up and down completely randomly.
Pair Corralation between Great Sun and Caihong Display
Assuming the 90 days trading horizon Great Sun is expected to generate 4.29 times less return on investment than Caihong Display. In addition to that, Great Sun is 1.2 times more volatile than Caihong Display Devices. It trades about 0.01 of its total potential returns per unit of risk. Caihong Display Devices is currently generating about 0.05 per unit of volatility. If you would invest 590.00 in Caihong Display Devices on October 16, 2024 and sell it today you would earn a total of 237.00 from holding Caihong Display Devices or generate 40.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Caihong Display Devices
Performance |
| Timeline |
| Great Sun Foods |
| Caihong Display Devices |
Great Sun and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Caihong Display
The main advantage of trading using opposite Great Sun and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display'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 |
| Caihong Display vs. Great Sun Foods Co | Caihong Display vs. Vanfund Urban Investment | Caihong Display vs. Zhongrun Resources Investment | Caihong Display vs. Kunwu Jiuding Investment |
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 Stocks Directory module to find actively traded stocks across global markets.
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