Correlation Between China State and Guangdong Marubi
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By analyzing existing cross correlation between China State Construction and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on China State 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 China State with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Guangdong Marubi.
Diversification Opportunities for China State and Guangdong Marubi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Guangdong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Guangdong Marubi go up and down completely randomly.
Pair Corralation between China State and Guangdong Marubi
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Guangdong Marubi. But the stock apears to be less risky and, when comparing its historical volatility, China State Construction is 2.05 times less risky than Guangdong Marubi. The stock trades about -0.03 of its potential returns per unit of risk. The Guangdong Marubi Biotechnology is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,114 in Guangdong Marubi Biotechnology on September 12, 2024 and sell it today you would lose (16.00) from holding Guangdong Marubi Biotechnology or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| China State Construction |
| Guangdong Marubi Bio |
China State and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Guangdong Marubi
The main advantage of trading using opposite China State and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Xilinmen Furniture Co | China State vs. Nanjing OLO Home | China State vs. Iat Automobile Technology | China State vs. Fiberhome Telecommunication Technologies |
| Guangdong Marubi vs. China Petroleum Chemical | Guangdong Marubi vs. PetroChina Co Ltd | Guangdong Marubi vs. China State Construction | Guangdong Marubi vs. China Railway 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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