Correlation Between Great Sun and Cowealth Medical
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By analyzing existing cross correlation between Great Sun Foods Co and Cowealth Medical China, you can compare the effects of market volatilities on Great Sun and Cowealth Medical 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 Cowealth Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Cowealth Medical.
Diversification Opportunities for Great Sun and Cowealth Medical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Great and Cowealth is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Cowealth Medical China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowealth Medical China 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 Cowealth Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowealth Medical China has no effect on the direction of Great Sun i.e., Great Sun and Cowealth Medical go up and down completely randomly.
Pair Corralation between Great Sun and Cowealth Medical
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.16 times more return on investment than Cowealth Medical. However, Great Sun is 1.16 times more volatile than Cowealth Medical China. It trades about -0.04 of its potential returns per unit of risk. Cowealth Medical China is currently generating about -0.05 per unit of risk. If you would invest 525.00 in Great Sun Foods Co on September 1, 2024 and sell it today you would lose (28.00) from holding Great Sun Foods Co or give up 5.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Cowealth Medical China
Performance |
| Timeline |
| Great Sun Foods |
| Cowealth Medical China |
Great Sun and Cowealth Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Cowealth Medical
The main advantage of trading using opposite Great Sun and Cowealth Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Cowealth Medical 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 Cowealth Medical will offset losses from the drop in Cowealth Medical's long position.| Great Sun vs. Nanjing Putian Telecommunications | Great Sun vs. Shenzhen Hifuture Electric | Great Sun vs. Tianjin Realty Development | Great Sun vs. Shenyang Huitian Thermal |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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