Correlation Between Jiangnan Mould and Guangdong Marubi
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Jiangnan Mould 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 Jiangnan Mould with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Guangdong Marubi.
Diversification Opportunities for Jiangnan Mould and Guangdong Marubi
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangnan and Guangdong is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic 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 Jiangnan Mould 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 Jiangnan Mould Plastic 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 Jiangnan Mould i.e., Jiangnan Mould and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Guangdong Marubi
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to under-perform the Guangdong Marubi. But the stock apears to be less risky and, when comparing its historical volatility, Jiangnan Mould Plastic is 1.65 times less risky than Guangdong Marubi. The stock trades about -0.3 of its potential returns per unit of risk. The Guangdong Marubi Biotechnology is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,098 in Guangdong Marubi Biotechnology on October 11, 2024 and sell it today you would earn a total of 245.00 from holding Guangdong Marubi Biotechnology or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Guangdong Marubi Bio |
Jiangnan Mould and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Guangdong Marubi
The main advantage of trading using opposite Jiangnan Mould and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould 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.| Jiangnan Mould vs. Guangxi Wuzhou Communications | Jiangnan Mould vs. Iat Automobile Technology | Jiangnan Mould vs. Cowealth Medical China | Jiangnan Mould vs. Fibocom Wireless |
| Guangdong Marubi vs. Jiangnan Mould Plastic | Guangdong Marubi vs. Suzhou Xingye Material | Guangdong Marubi vs. Hangzhou Gisway Information | Guangdong Marubi vs. Longmaster Information Tech |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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