Correlation Between Guangdong Jingyi and Guangdong Marubi
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Guangdong Marubi.
Diversification Opportunities for Guangdong Jingyi and Guangdong Marubi
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Guangdong is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal 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 Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Guangdong Marubi
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 1.74 times less return on investment than Guangdong Marubi. In addition to that, Guangdong Jingyi is 1.26 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.02 of its total potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.04 per unit of volatility. If you would invest 2,812 in Guangdong Marubi Biotechnology on October 18, 2024 and sell it today you would earn a total of 489.00 from holding Guangdong Marubi Biotechnology or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Guangdong Marubi Bio |
Guangdong Jingyi and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Guangdong Marubi
The main advantage of trading using opposite Guangdong Jingyi and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Shanghai Sanyou Medical | Guangdong Jingyi vs. Touchstone International Medical | Guangdong Jingyi vs. Allgens Medical Technology | Guangdong Jingyi vs. Road Environment Technology |
| Guangdong Marubi vs. King Strong New Material | Guangdong Marubi vs. Shanghai Shibei Hi Tech | Guangdong Marubi vs. Fujian Newland Computer | Guangdong Marubi vs. Strait Innovation Internet |
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 Stocks Directory module to find actively traded stocks across global markets.
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