Correlation Between Shandong Sanyuan and Guangdong Marubi
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Shandong Sanyuan 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 Shandong Sanyuan with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Guangdong Marubi.
Diversification Opportunities for Shandong Sanyuan and Guangdong Marubi
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Guangdong is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan 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 Shandong Sanyuan 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 Shandong Sanyuan 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 Shandong Sanyuan i.e., Shandong Sanyuan and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Guangdong Marubi
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 0.87 times more return on investment than Guangdong Marubi. However, Shandong Sanyuan Biotechnology is 1.15 times less risky than Guangdong Marubi. It trades about -0.13 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about -0.12 per unit of risk. If you would invest 2,728 in Shandong Sanyuan Biotechnology on October 25, 2024 and sell it today you would lose (142.00) from holding Shandong Sanyuan Biotechnology or give up 5.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Guangdong Marubi Bio |
Shandong Sanyuan and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Guangdong Marubi
The main advantage of trading using opposite Shandong Sanyuan and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan 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.| Shandong Sanyuan vs. Agricultural Bank of | Shandong Sanyuan vs. Postal Savings Bank | Shandong Sanyuan vs. Bank of Communications | Shandong Sanyuan vs. China Merchants Bank |
| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Postal Savings Bank | Guangdong Marubi vs. Bank of Communications | Guangdong Marubi vs. China Merchants 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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