Correlation Between Guangzhou Seagull and Guangdong Marubi
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Guangzhou Seagull 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 Guangzhou Seagull with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Guangdong Marubi.
Diversification Opportunities for Guangzhou Seagull and Guangdong Marubi
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Guangdong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen 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 Guangzhou Seagull 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 Guangzhou Seagull Kitchen 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 Guangzhou Seagull i.e., Guangzhou Seagull and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Guangdong Marubi
Assuming the 90 days trading horizon Guangzhou Seagull is expected to generate 28.48 times less return on investment than Guangdong Marubi. In addition to that, Guangzhou Seagull is 1.23 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.0 of its total potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.05 per unit of volatility. If you would invest 2,443 in Guangdong Marubi Biotechnology on September 12, 2024 and sell it today you would earn a total of 655.00 from holding Guangdong Marubi Biotechnology or generate 26.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Guangdong Marubi Bio |
Guangzhou Seagull and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Guangdong Marubi
The main advantage of trading using opposite Guangzhou Seagull and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull 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.| Guangzhou Seagull vs. Agricultural Bank of | Guangzhou Seagull vs. Industrial and Commercial | Guangzhou Seagull vs. Bank of China | Guangzhou Seagull vs. PetroChina Co Ltd |
| Guangdong Marubi vs. China Petroleum Chemical | Guangdong Marubi vs. PetroChina Co Ltd | Guangdong Marubi vs. China State Construction | Guangdong Marubi vs. China Railway Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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