Correlation Between Great Sun and China Publishing
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By analyzing existing cross correlation between Great Sun Foods Co and China Publishing Media, you can compare the effects of market volatilities on Great Sun and China Publishing 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and China Publishing.
Diversification Opportunities for Great Sun and China Publishing
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and China is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Publishing Media 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Great Sun i.e., Great Sun and China Publishing go up and down completely randomly.
Pair Corralation between Great Sun and China Publishing
Assuming the 90 days trading horizon Great Sun is expected to generate 1.01 times less return on investment than China Publishing. But when comparing it to its historical volatility, Great Sun Foods Co is 1.62 times less risky than China Publishing. It trades about 0.11 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 809.00 in China Publishing Media on September 14, 2024 and sell it today you would earn a total of 36.00 from holding China Publishing Media or generate 4.45% 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. China Publishing Media
Performance |
| Timeline |
| Great Sun Foods |
| China Publishing Media |
Great Sun and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and China Publishing
The main advantage of trading using opposite Great Sun and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, China Publishing 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 China Publishing will offset losses from the drop in China Publishing's long position.| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Tianjin Realty Development | Great Sun vs. Kangyue Technology Co | Great Sun vs. Shenzhen Hifuture Electric |
| China Publishing vs. Ming Yang Smart | China Publishing vs. 159681 | China Publishing vs. 159005 | China Publishing vs. Loctek Ergonomic Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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