Correlation Between Fujian Wanchen and Guangdong Marubi
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Fujian Wanchen 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 Fujian Wanchen with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Guangdong Marubi.
Diversification Opportunities for Fujian Wanchen and Guangdong Marubi
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Guangdong is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen 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 Fujian Wanchen 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 Fujian Wanchen 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 Fujian Wanchen i.e., Fujian Wanchen and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Guangdong Marubi
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 1.59 times more return on investment than Guangdong Marubi. However, Fujian Wanchen is 1.59 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.37 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.06 per unit of risk. If you would invest 8,023 in Fujian Wanchen Biotechnology on November 1, 2024 and sell it today you would earn a total of 2,257 from holding Fujian Wanchen Biotechnology or generate 28.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Guangdong Marubi Bio |
Fujian Wanchen and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Guangdong Marubi
The main advantage of trading using opposite Fujian Wanchen and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen 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.| Fujian Wanchen vs. Zoy Home Furnishing | Fujian Wanchen vs. Eyebright Medical Technology | Fujian Wanchen vs. HanS Laser Tech | Fujian Wanchen vs. DO Home Collection |
| Guangdong Marubi vs. Yindu Kitchen Equipment | Guangdong Marubi vs. Shenzhen Clou Electronics | Guangdong Marubi vs. Bosera CMSK Industrial | Guangdong Marubi vs. Guangzhou Restaurants Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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