Correlation Between Great Sun and Zhongtong Guomai
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By analyzing existing cross correlation between Great Sun Foods Co and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Great Sun and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Zhongtong Guomai.
Diversification Opportunities for Great Sun and Zhongtong Guomai
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Zhongtong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Great Sun i.e., Great Sun and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Great Sun and Zhongtong Guomai
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.0 times more return on investment than Zhongtong Guomai. However, Great Sun is 1.0 times more volatile than Zhongtong Guomai Communication. It trades about 0.08 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about -0.03 per unit of risk. If you would invest 482.00 in Great Sun Foods Co on September 4, 2024 and sell it today you would earn a total of 26.00 from holding Great Sun Foods Co or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| Great Sun Foods |
| Zhongtong Guomai Com |
Great Sun and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Zhongtong Guomai
The main advantage of trading using opposite Great Sun and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Great Sun vs. Jilin Jlu Communication | Great Sun vs. State Grid InformationCommunication | Great Sun vs. Eastern Communications Co | Great Sun vs. Anhui Deli Household |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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