Correlation Between Jiangsu Yueda and Guangdong Marubi
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Guangdong Marubi.
Diversification Opportunities for Jiangsu Yueda and Guangdong Marubi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment 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 Jiangsu Yueda 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 Jiangsu Yueda Investment 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 Jiangsu Yueda i.e., Jiangsu Yueda and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Guangdong Marubi
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.59 times more return on investment than Guangdong Marubi. However, Jiangsu Yueda Investment is 1.7 times less risky than Guangdong Marubi. It trades about 0.24 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.11 per unit of risk. If you would invest 456.00 in Jiangsu Yueda Investment on September 14, 2024 and sell it today you would earn a total of 44.00 from holding Jiangsu Yueda Investment or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Guangdong Marubi Bio |
Jiangsu Yueda and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Guangdong Marubi
The main advantage of trading using opposite Jiangsu Yueda and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. Lutian Machinery Co | Jiangsu Yueda vs. China Longyuan Power | Jiangsu Yueda vs. PetroChina Co Ltd | Jiangsu Yueda vs. Bank of China |
| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Industrial and Commercial | Guangdong Marubi vs. Bank of China | Guangdong Marubi vs. PetroChina Co Ltd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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