Correlation Between Great Sun and Bingo Software
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By analyzing existing cross correlation between Great Sun Foods Co and Bingo Software Co, you can compare the effects of market volatilities on Great Sun and Bingo Software 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 Bingo Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Bingo Software.
Diversification Opportunities for Great Sun and Bingo Software
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great and Bingo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Bingo Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bingo Software 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 Bingo Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bingo Software has no effect on the direction of Great Sun i.e., Great Sun and Bingo Software go up and down completely randomly.
Pair Corralation between Great Sun and Bingo Software
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.07 times more return on investment than Bingo Software. However, Great Sun is 1.07 times more volatile than Bingo Software Co. It trades about -0.14 of its potential returns per unit of risk. Bingo Software Co is currently generating about -0.23 per unit of risk. If you would invest 525.00 in Great Sun Foods Co on October 12, 2024 and sell it today you would lose (70.00) from holding Great Sun Foods Co or give up 13.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Sun Foods Co vs. Bingo Software Co
Performance |
| Timeline |
| Great Sun Foods |
| Bingo Software |
Great Sun and Bingo Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Sun and Bingo Software
The main advantage of trading using opposite Great Sun and Bingo Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Bingo Software 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 Bingo Software will offset losses from the drop in Bingo Software's long position.| Great Sun vs. Industrial and Commercial | Great Sun vs. Agricultural Bank of | Great Sun vs. China Construction Bank | Great Sun vs. Bank of China |
| Bingo Software vs. Jiahe Foods Industry | Bingo Software vs. Tianshan Aluminum Group | Bingo Software vs. CITIC Metal Co | Bingo Software vs. Great Sun Foods Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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