Correlation Between Gansu Huangtai and Guangdong Marubi
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Guangdong Marubi.
Diversification Opportunities for Gansu Huangtai and Guangdong Marubi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing 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 Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Guangdong Marubi
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.81 times more return on investment than Guangdong Marubi. However, Gansu Huangtai is 1.81 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.09 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about -0.13 per unit of risk. If you would invest 1,240 in Gansu Huangtai Wine marketing on August 25, 2024 and sell it today you would earn a total of 82.00 from holding Gansu Huangtai Wine marketing or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Guangdong Marubi Bio |
Gansu Huangtai and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Guangdong Marubi
The main advantage of trading using opposite Gansu Huangtai and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Haima Automobile Group | Gansu Huangtai vs. Tongyu Communication | Gansu Huangtai vs. Allwin Telecommunication Co | Gansu Huangtai vs. Youyou Foods Co |
| Guangdong Marubi vs. Guangdong Brandmax Marketing | Guangdong Marubi vs. AVCON Information Tech | Guangdong Marubi vs. Focus Media Information | Guangdong Marubi vs. Gansu Huangtai Wine marketing |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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