Correlation Between Eyebright Medical and Gan Yuan
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By analyzing existing cross correlation between Eyebright Medical Technology and Gan Yuan Foods, you can compare the effects of market volatilities on Eyebright Medical 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 Eyebright Medical with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Gan Yuan.
Diversification Opportunities for Eyebright Medical and Gan Yuan
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eyebright and Gan is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology 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 Eyebright Medical 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 Eyebright Medical Technology 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 Eyebright Medical i.e., Eyebright Medical and Gan Yuan go up and down completely randomly.
Pair Corralation between Eyebright Medical and Gan Yuan
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to under-perform the Gan Yuan. In addition to that, Eyebright Medical is 1.36 times more volatile than Gan Yuan Foods. It trades about -0.03 of its total potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.01 per unit of volatility. If you would invest 8,377 in Gan Yuan Foods on November 8, 2024 and sell it today you would lose (247.00) from holding Gan Yuan Foods or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Gan Yuan Foods
Performance |
| Timeline |
| Eyebright Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gan Yuan Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Eyebright Medical and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Gan Yuan
The main advantage of trading using opposite Eyebright Medical and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical 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 Eyebright Medical Technology 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.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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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