Correlation Between Great Sun and TPV Technology
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By analyzing existing cross correlation between Great Sun Foods Co and TPV Technology Co, you can compare the effects of market volatilities on Great Sun and TPV Technology 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 Great Sun with a short position of TPV Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and TPV Technology.
Diversification Opportunities for Great Sun and TPV Technology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Great and TPV is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and TPV Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPV Technology and Great Sun 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 Great Sun Foods Co are associated (or correlated) with TPV Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPV Technology has no effect on the direction of Great Sun i.e., Great Sun and TPV Technology go up and down completely randomly.
Pair Corralation between Great Sun and TPV Technology
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 0.93 times more return on investment than TPV Technology. However, Great Sun Foods Co is 1.08 times less risky than TPV Technology. It trades about -0.29 of its potential returns per unit of risk. TPV Technology Co is currently generating about -0.31 per unit of risk. If you would invest 519.00 in Great Sun Foods Co on October 10, 2024 and sell it today you would lose (105.00) from holding Great Sun Foods Co or give up 20.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Great Sun Foods Co vs. TPV Technology Co
Performance |
Timeline |
Great Sun Foods |
TPV Technology |
Great Sun and TPV Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Great Sun and TPV Technology
The main advantage of trading using opposite Great Sun and TPV Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, TPV Technology 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 TPV Technology will offset losses from the drop in TPV Technology's long position.Great Sun vs. Sharetronic Data Technology | Great Sun vs. Jinhe Biotechnology Co | Great Sun vs. XiaMen HongXin Electron tech | Great Sun vs. Jiangsu Jinling Sports |
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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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