Correlation Between Great-Sun Foods and Hengdian Entertainment
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By analyzing existing cross correlation between Great Sun Foods Co and Hengdian Entertainment Co, you can compare the effects of market volatilities on Great-Sun Foods and Hengdian Entertainment 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 Hengdian Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-Sun Foods and Hengdian Entertainment.
Diversification Opportunities for Great-Sun Foods and Hengdian Entertainment
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Great-Sun and Hengdian is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Hengdian Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengdian Entertainment 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 Hengdian Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengdian Entertainment has no effect on the direction of Great-Sun Foods i.e., Great-Sun Foods and Hengdian Entertainment go up and down completely randomly.
Pair Corralation between Great-Sun Foods and Hengdian Entertainment
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.2 times more return on investment than Hengdian Entertainment. However, Great-Sun Foods is 1.2 times more volatile than Hengdian Entertainment Co. It trades about 0.05 of its potential returns per unit of risk. Hengdian Entertainment Co is currently generating about 0.03 per unit of risk. If you would invest 328.00 in Great Sun Foods Co on November 3, 2024 and sell it today you would earn a total of 113.00 from holding Great Sun Foods Co or generate 34.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Hengdian Entertainment Co
Performance |
| Timeline |
| Great Sun Foods |
| Hengdian Entertainment |
Great-Sun Foods and Hengdian Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-Sun Foods and Hengdian Entertainment
The main advantage of trading using opposite Great-Sun Foods and Hengdian Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-Sun Foods position performs unexpectedly, Hengdian Entertainment 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 Hengdian Entertainment will offset losses from the drop in Hengdian Entertainment'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 |
| Hengdian Entertainment vs. China World Trade | Hengdian Entertainment vs. Shandong Longquan Pipeline | Hengdian Entertainment vs. Linewell Software Co | Hengdian Entertainment vs. Guangdong Jingyi Metal |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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