Correlation Between Jiangsu GDK and Great Sun
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Great Sun Foods Co, you can compare the effects of market volatilities on Jiangsu GDK and Great Sun 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 Jiangsu GDK with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Great Sun.
Diversification Opportunities for Jiangsu GDK and Great Sun
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Great is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods and Jiangsu GDK 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 Jiangsu GDK Biotechnology are associated (or correlated) with Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Great Sun go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Great Sun
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 1.17 times more return on investment than Great Sun. However, Jiangsu GDK is 1.17 times more volatile than Great Sun Foods Co. It trades about 0.12 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.13 per unit of risk. If you would invest 1,000.00 in Jiangsu GDK Biotechnology on September 25, 2024 and sell it today you would earn a total of 309.00 from holding Jiangsu GDK Biotechnology or generate 30.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Great Sun Foods Co
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Great Sun Foods |
Jiangsu GDK and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Great Sun
The main advantage of trading using opposite Jiangsu GDK and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun's long position.| Jiangsu GDK vs. Hubeiyichang Transportation Group | Jiangsu GDK vs. Xinjiang Baodi Mining | Jiangsu GDK vs. Shanghai Rongtai Health | Jiangsu GDK vs. Shenzhen Silver Basis |
| Great Sun vs. Ming Yang Smart | Great Sun vs. 159681 | Great Sun vs. 159005 | Great Sun vs. Loctek Ergonomic Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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