Correlation Between Xingguang Agricultural and Gan Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xingguang Agricultural Mach and Gan Yuan Foods, you can compare the effects of market volatilities on Xingguang Agricultural and Gan Yuan 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 Xingguang Agricultural with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xingguang Agricultural and Gan Yuan.
Diversification Opportunities for Xingguang Agricultural and Gan Yuan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Xingguang and Gan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Xingguang Agricultural Mach and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods and Xingguang Agricultural 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 Xingguang Agricultural Mach are associated (or correlated) with Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Xingguang Agricultural i.e., Xingguang Agricultural and Gan Yuan go up and down completely randomly.
Pair Corralation between Xingguang Agricultural and Gan Yuan
Assuming the 90 days trading horizon Xingguang Agricultural is expected to generate 1.97 times less return on investment than Gan Yuan. In addition to that, Xingguang Agricultural is 1.57 times more volatile than Gan Yuan Foods. It trades about 0.01 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.05 per unit of volatility. If you would invest 6,687 in Gan Yuan Foods on September 12, 2024 and sell it today you would earn a total of 1,506 from holding Gan Yuan Foods or generate 22.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xingguang Agricultural Mach vs. Gan Yuan Foods
Performance |
| Timeline |
| Xingguang Agricultural |
| Gan Yuan Foods |
Xingguang Agricultural and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xingguang Agricultural and Gan Yuan
The main advantage of trading using opposite Xingguang Agricultural and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xingguang Agricultural position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan's long position.The idea behind Xingguang Agricultural Mach and Gan Yuan Foods pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Gan Yuan vs. Linewell Software Co | Gan Yuan vs. Glodon Software Co | Gan Yuan vs. Gem Year Industrial Co | Gan Yuan vs. Guangdong Jingyi Metal |
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.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |