Correlation Between Guilin Seamild and Cabio Biotech
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By analyzing existing cross correlation between Guilin Seamild Foods and Cabio Biotech Wuhan, you can compare the effects of market volatilities on Guilin Seamild and Cabio Biotech 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 Guilin Seamild with a short position of Cabio Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Cabio Biotech.
Diversification Opportunities for Guilin Seamild and Cabio Biotech
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guilin and Cabio is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Cabio Biotech Wuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabio Biotech Wuhan and Guilin Seamild 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 Guilin Seamild Foods are associated (or correlated) with Cabio Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabio Biotech Wuhan has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Cabio Biotech go up and down completely randomly.
Pair Corralation between Guilin Seamild and Cabio Biotech
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.72 times more return on investment than Cabio Biotech. However, Guilin Seamild Foods is 1.38 times less risky than Cabio Biotech. It trades about 0.03 of its potential returns per unit of risk. Cabio Biotech Wuhan is currently generating about -0.03 per unit of risk. If you would invest 1,343 in Guilin Seamild Foods on October 11, 2024 and sell it today you would earn a total of 229.00 from holding Guilin Seamild Foods or generate 17.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Cabio Biotech Wuhan
Performance |
| Timeline |
| Guilin Seamild Foods |
| Cabio Biotech Wuhan |
Guilin Seamild and Cabio Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Cabio Biotech
The main advantage of trading using opposite Guilin Seamild and Cabio Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Cabio Biotech 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 Cabio Biotech will offset losses from the drop in Cabio Biotech's long position.| Guilin Seamild vs. Beijing Kingsoft Office | Guilin Seamild vs. Fibocom Wireless | Guilin Seamild vs. Ningbo MedicalSystem Biotechnology | Guilin Seamild vs. Guangdong Marubi Biotechnology |
| Cabio Biotech vs. Ping An Insurance | Cabio Biotech vs. Maoming Petro Chemical Shihua | Cabio Biotech vs. Guilin Seamild Foods | Cabio Biotech vs. Dymatic Chemicals |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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