Correlation Between Suzhou Weizhixiang and Gan Yuan
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Gan Yuan Foods, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Gan Yuan.
Diversification Opportunities for Suzhou Weizhixiang and Gan Yuan
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Suzhou and Gan is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food 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 Suzhou Weizhixiang 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 Suzhou Weizhixiang Food 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Gan Yuan go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Gan Yuan
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Gan Yuan. But the stock apears to be less risky and, when comparing its historical volatility, Suzhou Weizhixiang Food is 1.23 times less risky than Gan Yuan. The stock trades about -0.28 of its potential returns per unit of risk. The Gan Yuan Foods is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,193 in Gan Yuan Foods on November 11, 2024 and sell it today you would earn a total of 227.00 from holding Gan Yuan Foods or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Gan Yuan Foods
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Gan Yuan Foods |
Suzhou Weizhixiang and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Gan Yuan
The main advantage of trading using opposite Suzhou Weizhixiang and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Ningbo Ligong Online | Suzhou Weizhixiang vs. Eastern Air Logistics | Suzhou Weizhixiang vs. Bank of Suzhou | Suzhou Weizhixiang vs. PKU HealthCare Corp |
| Gan Yuan vs. HanS Laser Tech | Gan Yuan vs. Hubeiyichang Transportation Group | Gan Yuan vs. Anhui Transport Consulting | Gan Yuan vs. XiaMen HongXin Electron tech |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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