Correlation Between Hunan Investment and Guangdong Marubi
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By analyzing existing cross correlation between Hunan Investment Group and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Guangdong Marubi.
Diversification Opportunities for Hunan Investment and Guangdong Marubi
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hunan and Guangdong is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group 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 Hunan Investment 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 Hunan Investment Group 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 Hunan Investment i.e., Hunan Investment and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Hunan Investment and Guangdong Marubi
Assuming the 90 days trading horizon Hunan Investment Group is expected to under-perform the Guangdong Marubi. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Investment Group is 1.4 times less risky than Guangdong Marubi. The stock trades about -0.15 of its potential returns per unit of risk. The Guangdong Marubi Biotechnology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,288 in Guangdong Marubi Biotechnology on October 20, 2024 and sell it today you would earn a total of 80.00 from holding Guangdong Marubi Biotechnology or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Hunan Investment |
| Guangdong Marubi Bio |
Hunan Investment and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Guangdong Marubi
The main advantage of trading using opposite Hunan Investment and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. Hangzhou Guotai Environmental | Hunan Investment vs. Shenzhen MYS Environmental | Hunan Investment vs. Ningbo Fangzheng Automobile | Hunan Investment vs. Eit Environmental Development |
| Guangdong Marubi vs. Jiugui Liquor Co | Guangdong Marubi vs. Changjiang Publishing Media | Guangdong Marubi vs. Shanghai Rongtai Health | Guangdong Marubi vs. Offcn Education 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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