Correlation Between Shenzhen New and Guangdong Marubi
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By analyzing existing cross correlation between Shenzhen New Nanshan and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Shenzhen New 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 Shenzhen New with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen New and Guangdong Marubi.
Diversification Opportunities for Shenzhen New and Guangdong Marubi
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Guangdong is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen New Nanshan 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 Shenzhen New 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 Shenzhen New Nanshan 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 Shenzhen New i.e., Shenzhen New and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Shenzhen New and Guangdong Marubi
Assuming the 90 days trading horizon Shenzhen New Nanshan is expected to under-perform the Guangdong Marubi. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen New Nanshan is 1.22 times less risky than Guangdong Marubi. The stock trades about -0.33 of its potential returns per unit of risk. The Guangdong Marubi Biotechnology is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 3,617 in Guangdong Marubi Biotechnology on October 21, 2024 and sell it today you would lose (249.00) from holding Guangdong Marubi Biotechnology or give up 6.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen New Nanshan vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Shenzhen New Nanshan |
| Guangdong Marubi Bio |
Shenzhen New and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen New and Guangdong Marubi
The main advantage of trading using opposite Shenzhen New and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen New 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.| Shenzhen New vs. Bank of China | Shenzhen New vs. Kweichow Moutai Co | Shenzhen New vs. PetroChina Co Ltd | Shenzhen New vs. Bank of Communications |
| Guangdong Marubi vs. Jiugui Liquor Co | Guangdong Marubi vs. Changjiang Publishing Media | Guangdong Marubi vs. Shanghai Rongtai Health | Guangdong Marubi vs. Offcn Education Technology |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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