Correlation Between Shenzhen Bioeasy and Guangdong Marubi
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Shenzhen Bioeasy 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 Bioeasy with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and Guangdong Marubi.
Diversification Opportunities for Shenzhen Bioeasy and Guangdong Marubi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Guangdong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology 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 Bioeasy 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 Bioeasy Biotechnology 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 Bioeasy i.e., Shenzhen Bioeasy and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and Guangdong Marubi
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to generate 2.49 times more return on investment than Guangdong Marubi. However, Shenzhen Bioeasy is 2.49 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.17 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about -0.19 per unit of risk. If you would invest 888.00 in Shenzhen Bioeasy Biotechnology on August 28, 2024 and sell it today you would earn a total of 167.00 from holding Shenzhen Bioeasy Biotechnology or generate 18.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| Guangdong Marubi Bio |
Shenzhen Bioeasy and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and Guangdong Marubi
The main advantage of trading using opposite Shenzhen Bioeasy and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy 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 Bioeasy vs. Industrial and Commercial | Shenzhen Bioeasy vs. China Construction Bank | Shenzhen Bioeasy vs. Agricultural Bank of | Shenzhen Bioeasy vs. Bank of China |
| Guangdong Marubi vs. Longjian Road Bridge | Guangdong Marubi vs. Dazhong Transportation Group | Guangdong Marubi vs. Heilongjiang Publishing Media | Guangdong Marubi vs. Guizhou BroadcastingTV Info |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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