Correlation Between Hithink RoyalFlush and Guangdong Marubi
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By analyzing existing cross correlation between Hithink RoyalFlush Info and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Hithink RoyalFlush 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 Hithink RoyalFlush with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hithink RoyalFlush and Guangdong Marubi.
Diversification Opportunities for Hithink RoyalFlush and Guangdong Marubi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hithink and Guangdong is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Hithink RoyalFlush Info 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 Hithink RoyalFlush 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 Hithink RoyalFlush Info 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 Hithink RoyalFlush i.e., Hithink RoyalFlush and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Hithink RoyalFlush and Guangdong Marubi
Assuming the 90 days trading horizon Hithink RoyalFlush Info is expected to generate 2.12 times more return on investment than Guangdong Marubi. However, Hithink RoyalFlush is 2.12 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.18 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.02 per unit of risk. If you would invest 11,193 in Hithink RoyalFlush Info on September 5, 2024 and sell it today you would earn a total of 21,921 from holding Hithink RoyalFlush Info or generate 195.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hithink RoyalFlush Info vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Hithink RoyalFlush Info |
| Guangdong Marubi Bio |
Hithink RoyalFlush and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hithink RoyalFlush and Guangdong Marubi
The main advantage of trading using opposite Hithink RoyalFlush and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hithink RoyalFlush 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.| Hithink RoyalFlush vs. Maccura Biotechnology Co | Hithink RoyalFlush vs. Huaxia Fund Management | Hithink RoyalFlush vs. Harvest Fund Management | Hithink RoyalFlush vs. Dareway Software Co |
| Guangdong Marubi vs. Biwin Storage Technology | Guangdong Marubi vs. PetroChina Co Ltd | Guangdong Marubi vs. Industrial and Commercial | Guangdong Marubi vs. China Construction Bank |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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