Correlation Between Great Sun and Suzhou Xingye
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By analyzing existing cross correlation between Great Sun Foods Co and Suzhou Xingye Material, you can compare the effects of market volatilities on Great Sun and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Suzhou Xingye.
Diversification Opportunities for Great Sun and Suzhou Xingye
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and Suzhou is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Great Sun i.e., Great Sun and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Great Sun and Suzhou Xingye
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.23 times more return on investment than Suzhou Xingye. However, Great Sun is 1.23 times more volatile than Suzhou Xingye Material. It trades about 0.01 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about -0.01 per unit of risk. If you would invest 493.00 in Great Sun Foods Co on October 16, 2024 and sell it today you would lose (45.00) from holding Great Sun Foods Co or give up 9.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Suzhou Xingye Material
Performance |
| Timeline |
| Great Sun Foods |
| Suzhou Xingye Material |
Great Sun and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Suzhou Xingye
The main advantage of trading using opposite Great Sun and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Great Sun vs. CIMC Vehicles Co | Great Sun vs. Dongfeng Automobile Co | Great Sun vs. Bank of Communications | Great Sun vs. Guangzhou Haige Communications |
| Suzhou Xingye vs. Inspur Software Co | Suzhou Xingye vs. Shandong Hi Speed RoadBridge | Suzhou Xingye vs. Shaanxi Broadcast TV | Suzhou Xingye vs. Hangzhou Pinming Software |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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