Correlation Between V V and Guangdong Marubi
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By analyzing existing cross correlation between V V Food and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on V V 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 V V with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Guangdong Marubi.
Diversification Opportunities for V V and Guangdong Marubi
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 600300 and Guangdong is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding V V Food 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 V V 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 V V Food 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 V V i.e., V V and Guangdong Marubi go up and down completely randomly.
Pair Corralation between V V and Guangdong Marubi
Assuming the 90 days trading horizon V V Food is expected to under-perform the Guangdong Marubi. But the stock apears to be less risky and, when comparing its historical volatility, V V Food is 1.41 times less risky than Guangdong Marubi. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Marubi Biotechnology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,202 in Guangdong Marubi Biotechnology on October 15, 2024 and sell it today you would lose (1.00) from holding Guangdong Marubi Biotechnology or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| V V Food |
| Guangdong Marubi Bio |
V V and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Guangdong Marubi
The main advantage of trading using opposite V V and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V 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.| V V vs. Elite Color Environmental | V V vs. Orinko Advanced Plastics | V V vs. China Building Material | V V vs. Shenzhen MYS Environmental |
| Guangdong Marubi vs. Jiangsu Financial Leasing | Guangdong Marubi vs. Ningbo Tech Bank Co | Guangdong Marubi vs. Shanghai Ziyan Foods | Guangdong Marubi vs. HeNan Splendor Science |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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