Correlation Between Shanghai CEO and Gan Yuan
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By analyzing existing cross correlation between Shanghai CEO Environmental and Gan Yuan Foods, you can compare the effects of market volatilities on Shanghai CEO 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 Shanghai CEO with a short position of Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and Gan Yuan.
Diversification Opportunities for Shanghai CEO and Gan Yuan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Gan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental 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 Shanghai CEO 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 Shanghai CEO Environmental 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 Shanghai CEO i.e., Shanghai CEO and Gan Yuan go up and down completely randomly.
Pair Corralation between Shanghai CEO and Gan Yuan
Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to generate 19.14 times more return on investment than Gan Yuan. However, Shanghai CEO is 19.14 times more volatile than Gan Yuan Foods. It trades about 0.04 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.01 per unit of risk. If you would invest 2,186 in Shanghai CEO Environmental on August 29, 2024 and sell it today you would lose (1,219) from holding Shanghai CEO Environmental or give up 55.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. Gan Yuan Foods
Performance |
| Timeline |
| Shanghai CEO Environ |
| Gan Yuan Foods |
Shanghai CEO and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and Gan Yuan
The main advantage of trading using opposite Shanghai CEO and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO 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.| Shanghai CEO vs. Kweichow Moutai Co | Shanghai CEO vs. Shenzhen Mindray Bio Medical | Shanghai CEO vs. G bits Network Technology | Shanghai CEO vs. Shenzhen Transsion Holdings |
| Gan Yuan vs. Marssenger Kitchenware Co | Gan Yuan vs. XinJiang GuoTong Pipeline | Gan Yuan vs. Yindu Kitchen Equipment | Gan Yuan vs. Zhejiang Kingland Pipeline |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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