Correlation Between Guangdong Marubi and Hunan Investment
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Hunan Investment Group, you can compare the effects of market volatilities on Guangdong Marubi and Hunan Investment 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 Guangdong Marubi with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Hunan Investment.
Diversification Opportunities for Guangdong Marubi and Hunan Investment
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Hunan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Guangdong Marubi 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 Guangdong Marubi Biotechnology are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Hunan Investment go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Hunan Investment
Assuming the 90 days trading horizon Guangdong Marubi is expected to generate 2.43 times less return on investment than Hunan Investment. But when comparing it to its historical volatility, Guangdong Marubi Biotechnology is 1.22 times less risky than Hunan Investment. It trades about 0.11 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 526.00 in Hunan Investment Group on September 14, 2024 and sell it today you would earn a total of 89.00 from holding Hunan Investment Group or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Hunan Investment Group
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Hunan Investment |
Guangdong Marubi and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Hunan Investment
The main advantage of trading using opposite Guangdong Marubi and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Industrial and Commercial | Guangdong Marubi vs. Bank of China | Guangdong Marubi vs. PetroChina Co Ltd |
| Hunan Investment vs. Kweichow Moutai Co | Hunan Investment vs. Jiangsu Pacific Quartz | Hunan Investment vs. Shenzhen Transsion Holdings | Hunan Investment vs. Beijing Roborock Technology |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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