Correlation Between Great Sun and Namchow Food
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By analyzing existing cross correlation between Great Sun Foods Co and Namchow Food Group, you can compare the effects of market volatilities on Great Sun and Namchow Food 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 Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Namchow Food.
Diversification Opportunities for Great Sun and Namchow Food
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and Namchow is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group 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 Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Great Sun i.e., Great Sun and Namchow Food go up and down completely randomly.
Pair Corralation between Great Sun and Namchow Food
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.83 times more return on investment than Namchow Food. However, Great Sun is 1.83 times more volatile than Namchow Food Group. It trades about 0.01 of its potential returns per unit of risk. Namchow Food Group is currently generating about -0.02 per unit of risk. If you would invest 503.00 in Great Sun Foods Co on August 24, 2024 and sell it today you would lose (38.00) from holding Great Sun Foods Co or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Namchow Food Group
Performance |
| Timeline |
| Great Sun Foods |
| Namchow Food Group |
Great Sun and Namchow Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Namchow Food
The main advantage of trading using opposite Great Sun and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.| Great Sun vs. Namchow Food Group | Great Sun vs. Luyin Investment Group | Great Sun vs. Shenzhen Centralcon Investment | Great Sun vs. Nuode Investment Co |
| Namchow Food vs. Sanbo Hospital Management | Namchow Food vs. Hefei Metalforming Mach | Namchow Food vs. Guangdong Jingyi Metal | Namchow Food vs. CICC Fund Management |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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