Correlation Between China Reform and Guangdong Marubi
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Reform Health and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on China Reform and Guangdong Marubi 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 China Reform with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Reform and Guangdong Marubi.
Diversification Opportunities for China Reform and Guangdong Marubi
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Guangdong is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding China Reform Health and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio and China Reform 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 China Reform Health are associated (or correlated) with Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of China Reform i.e., China Reform and Guangdong Marubi go up and down completely randomly.
Pair Corralation between China Reform and Guangdong Marubi
Assuming the 90 days trading horizon China Reform Health is expected to generate 1.3 times more return on investment than Guangdong Marubi. However, China Reform is 1.3 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 1,074 in China Reform Health on October 30, 2024 and sell it today you would lose (106.00) from holding China Reform Health or give up 9.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Reform Health vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| China Reform Health |
| Guangdong Marubi Bio |
China Reform and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Reform and Guangdong Marubi
The main advantage of trading using opposite China Reform and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Reform position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| China Reform vs. Bank of China | China Reform vs. Kweichow Moutai Co | China Reform vs. PetroChina Co Ltd | China Reform vs. Bank of Communications |
| Guangdong Marubi vs. BrightGene Bio Medical | Guangdong Marubi vs. Beijing Kingsoft Office | Guangdong Marubi vs. Chison Medical Technologies | Guangdong Marubi vs. Allmed Medical Products |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets |