Correlation Between Shenzhen Silver and Guangdong Marubi
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By analyzing existing cross correlation between Shenzhen Silver Basis and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Shenzhen Silver 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 Silver with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Guangdong Marubi.
Diversification Opportunities for Shenzhen Silver and Guangdong Marubi
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shenzhen and Guangdong is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis 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 Silver 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 Silver Basis 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 Silver i.e., Shenzhen Silver and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Guangdong Marubi
Assuming the 90 days trading horizon Shenzhen Silver Basis is expected to under-perform the Guangdong Marubi. In addition to that, Shenzhen Silver is 1.31 times more volatile than Guangdong Marubi Biotechnology. It trades about -0.05 of its total potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.03 per unit of volatility. If you would invest 3,277 in Guangdong Marubi Biotechnology on November 3, 2024 and sell it today you would earn a total of 22.00 from holding Guangdong Marubi Biotechnology or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Guangdong Marubi Bio |
Shenzhen Silver and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Guangdong Marubi
The main advantage of trading using opposite Shenzhen Silver and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver 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 Silver vs. China Longyuan Power | Shenzhen Silver vs. PetroChina Co Ltd | Shenzhen Silver vs. Guangxi Guiguan Electric | Shenzhen Silver vs. Yantai North Andre |
| Guangdong Marubi vs. Kweichow Moutai Co | Guangdong Marubi vs. Shenzhen Mindray Bio Medical | Guangdong Marubi vs. Jiangsu Pacific Quartz | Guangdong Marubi vs. G bits Network 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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