Correlation Between Hengli Industrial and Guangdong Marubi
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By analyzing existing cross correlation between Hengli Industrial Development and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Hengli Industrial 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 Hengli Industrial with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Guangdong Marubi.
Diversification Opportunities for Hengli Industrial and Guangdong Marubi
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hengli and Guangdong is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development 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 Hengli Industrial 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 Hengli Industrial Development 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 Hengli Industrial i.e., Hengli Industrial and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Hengli Industrial and Guangdong Marubi
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 1.17 times more return on investment than Guangdong Marubi. However, Hengli Industrial is 1.17 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.36 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about -0.12 per unit of risk. If you would invest 201.00 in Hengli Industrial Development on October 25, 2024 and sell it today you would earn a total of 40.00 from holding Hengli Industrial Development or generate 19.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Hengli Industrial |
| Guangdong Marubi Bio |
Hengli Industrial and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Guangdong Marubi
The main advantage of trading using opposite Hengli Industrial and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial 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.| Hengli Industrial vs. PetroChina Co Ltd | Hengli Industrial vs. Gansu Jiu Steel | Hengli Industrial vs. Ming Yang Smart | Hengli Industrial vs. Aba Chemicals Corp |
| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Postal Savings Bank | Guangdong Marubi vs. Bank of Communications | Guangdong Marubi vs. China Merchants Bank |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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