Correlation Between Great Sun and Industrial Bank
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By analyzing existing cross correlation between Great Sun Foods Co and Industrial Bank Co, you can compare the effects of market volatilities on Great Sun and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Industrial Bank.
Diversification Opportunities for Great Sun and Industrial Bank
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Great and Industrial is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Great Sun i.e., Great Sun and Industrial Bank go up and down completely randomly.
Pair Corralation between Great Sun and Industrial Bank
Assuming the 90 days trading horizon Great Sun Foods Co is expected to under-perform the Industrial Bank. In addition to that, Great Sun is 3.42 times more volatile than Industrial Bank Co. It trades about -0.15 of its total potential returns per unit of risk. Industrial Bank Co is currently generating about 0.23 per unit of volatility. If you would invest 1,855 in Industrial Bank Co on October 12, 2024 and sell it today you would earn a total of 106.00 from holding Industrial Bank Co or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Industrial Bank Co
Performance |
| Timeline |
| Great Sun Foods |
| Industrial Bank |
Great Sun and Industrial Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Industrial Bank
The main advantage of trading using opposite Great Sun and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.| Great Sun vs. Liaoning Chengda Biotechnology | Great Sun vs. Qijing Machinery | Great Sun vs. Sichuan Hebang Biotechnology | Great Sun vs. Long Yuan Construction |
| Industrial Bank vs. Gan Yuan Foods | Industrial Bank vs. Eastroc Beverage Group | Industrial Bank vs. Qingdao Foods Co | Industrial Bank 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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