Correlation Between Yifeng Pharmacy and Guangdong Marubi
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By analyzing existing cross correlation between Yifeng Pharmacy and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Yifeng Pharmacy 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 Yifeng Pharmacy with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yifeng Pharmacy and Guangdong Marubi.
Diversification Opportunities for Yifeng Pharmacy and Guangdong Marubi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yifeng and Guangdong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Yifeng Pharmacy 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 Yifeng Pharmacy 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 Yifeng Pharmacy 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 Yifeng Pharmacy i.e., Yifeng Pharmacy and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Yifeng Pharmacy and Guangdong Marubi
Assuming the 90 days trading horizon Yifeng Pharmacy is expected to under-perform the Guangdong Marubi. But the stock apears to be less risky and, when comparing its historical volatility, Yifeng Pharmacy is 1.36 times less risky than Guangdong Marubi. The stock trades about -0.21 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 3,001 in Guangdong Marubi Biotechnology on September 5, 2024 and sell it today you would lose (11.00) from holding Guangdong Marubi Biotechnology or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yifeng Pharmacy vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Yifeng Pharmacy |
| Guangdong Marubi Bio |
Yifeng Pharmacy and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yifeng Pharmacy and Guangdong Marubi
The main advantage of trading using opposite Yifeng Pharmacy and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yifeng Pharmacy 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.| Yifeng Pharmacy vs. Renxin New Material | Yifeng Pharmacy vs. Hangzhou Gaoxin Rubber | Yifeng Pharmacy vs. China World Trade | Yifeng Pharmacy vs. Cangzhou Mingzhu Plastic |
| Guangdong Marubi vs. Biwin Storage Technology | Guangdong Marubi vs. PetroChina Co Ltd | Guangdong Marubi vs. Industrial and Commercial | Guangdong Marubi vs. China Construction 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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