Correlation Between Great Sun and Eyebright Medical
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By analyzing existing cross correlation between Great Sun Foods Co and Eyebright Medical Technology, you can compare the effects of market volatilities on Great Sun and Eyebright Medical 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 Eyebright Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Sun and Eyebright Medical.
Diversification Opportunities for Great Sun and Eyebright Medical
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Great and Eyebright is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Great Sun Foods Co and Eyebright Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eyebright Medical 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 Eyebright Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eyebright Medical has no effect on the direction of Great Sun i.e., Great Sun and Eyebright Medical go up and down completely randomly.
Pair Corralation between Great Sun and Eyebright Medical
Assuming the 90 days trading horizon Great Sun Foods Co is expected to generate 1.02 times more return on investment than Eyebright Medical. However, Great Sun is 1.02 times more volatile than Eyebright Medical Technology. It trades about 0.01 of its potential returns per unit of risk. Eyebright Medical Technology is currently generating about -0.04 per unit of risk. If you would invest 512.00 in Great Sun Foods Co on September 26, 2024 and sell it today you would lose (67.00) from holding Great Sun Foods Co or give up 13.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Great Sun Foods Co vs. Eyebright Medical Technology
Performance |
Timeline |
Great Sun Foods |
Eyebright Medical |
Great Sun and Eyebright Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Great Sun and Eyebright Medical
The main advantage of trading using opposite Great Sun and Eyebright Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Sun position performs unexpectedly, Eyebright Medical 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 Eyebright Medical will offset losses from the drop in Eyebright Medical's long position.Great Sun vs. Ming Yang Smart | Great Sun vs. 159681 | Great Sun vs. 159005 | Great Sun vs. Loctek Ergonomic Technology |
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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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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