Correlation Between Great Sun and Western Superconducting
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By analyzing existing cross correlation between Great Sun Foods Co and Western Superconducting Tech, you can compare the effects of market volatilities on Great Sun and Western Superconducting 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 Western Superconducting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Western Superconducting.
Diversification Opportunities for Great Sun and Western Superconducting
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and Western is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Western Superconducting Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Superconducting 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 Western Superconducting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Superconducting has no effect on the direction of Great Sun i.e., Great Sun and Western Superconducting go up and down completely randomly.
Pair Corralation between Great Sun and Western Superconducting
Assuming the 90 days trading horizon Great Sun Foods Co is expected to under-perform the Western Superconducting. In addition to that, Great Sun is 2.1 times more volatile than Western Superconducting Tech. It trades about -0.1 of its total potential returns per unit of risk. Western Superconducting Tech is currently generating about -0.07 per unit of volatility. If you would invest 4,370 in Western Superconducting Tech on September 27, 2024 and sell it today you would lose (102.00) from holding Western Superconducting Tech or give up 2.33% 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. Western Superconducting Tech
Performance |
| Timeline |
| Great Sun Foods |
| Western Superconducting |
Great Sun and Western Superconducting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Western Superconducting
The main advantage of trading using opposite Great Sun and Western Superconducting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Western Superconducting 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 Western Superconducting will offset losses from the drop in Western Superconducting's long position.| Great Sun vs. Ming Yang Smart | Great Sun vs. 159681 | Great Sun vs. 159005 | Great Sun vs. Loctek Ergonomic Technology |
| Western Superconducting vs. Eastroc Beverage Group | Western Superconducting vs. Jiajia Food Group | Western Superconducting vs. Great Sun Foods Co | Western Superconducting vs. Suzhou Weizhixiang Food |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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