Correlation Between Great Sun and Kingclean Electric
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By analyzing existing cross correlation between Great Sun Foods Co and Kingclean Electric Co, you can compare the effects of market volatilities on Great Sun and Kingclean Electric 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 Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Kingclean Electric.
Diversification Opportunities for Great Sun and Kingclean Electric
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and Kingclean is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric 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 Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Great Sun i.e., Great Sun and Kingclean Electric go up and down completely randomly.
Pair Corralation between Great Sun and Kingclean Electric
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.77 times more return on investment than Kingclean Electric. However, Great Sun is 1.77 times more volatile than Kingclean Electric Co. It trades about 0.11 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about -0.1 per unit of risk. If you would invest 521.00 in Great Sun Foods Co on September 14, 2024 and sell it today you would earn a total of 30.00 from holding Great Sun Foods Co or generate 5.76% 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. Kingclean Electric Co
Performance |
| Timeline |
| Great Sun Foods |
| Kingclean Electric |
Great Sun and Kingclean Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Kingclean Electric
The main advantage of trading using opposite Great Sun and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Kingclean Electric 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 Kingclean Electric will offset losses from the drop in Kingclean Electric'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 |
| Kingclean Electric vs. Anji Foodstuff Co | Kingclean Electric vs. Great Sun Foods Co | Kingclean Electric vs. Beijing Yanjing Brewery | Kingclean Electric vs. Eastroc Beverage Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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