Correlation Between Guangdong Marubi and Shenzhen New
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Shenzhen New Nanshan, you can compare the effects of market volatilities on Guangdong Marubi and Shenzhen New 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 Shenzhen New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Shenzhen New.
Diversification Opportunities for Guangdong Marubi and Shenzhen New
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Shenzhen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan 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 Shenzhen New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Shenzhen New go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Shenzhen New
Assuming the 90 days trading horizon Guangdong Marubi is expected to generate 3.32 times less return on investment than Shenzhen New. But when comparing it to its historical volatility, Guangdong Marubi Biotechnology is 1.13 times less risky than Shenzhen New. It trades about 0.07 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 267.00 in Shenzhen New Nanshan on September 13, 2024 and sell it today you would earn a total of 40.00 from holding Shenzhen New Nanshan or generate 14.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Shenzhen New Nanshan
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Shenzhen New Nanshan |
Guangdong Marubi and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Shenzhen New
The main advantage of trading using opposite Guangdong Marubi and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Shenzhen New 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 Shenzhen New will offset losses from the drop in Shenzhen New's long position.| Guangdong Marubi vs. Tongling Nonferrous Metals | Guangdong Marubi vs. Sino Platinum Metals Co | Guangdong Marubi vs. CITIC Metal Co | Guangdong Marubi vs. Zhongshan Public Utilities |
| Shenzhen New vs. Guangdong Marubi Biotechnology | Shenzhen New vs. Ningbo Ligong Online | Shenzhen New vs. Quectel Wireless Solutions | Shenzhen New vs. Sichuan Hebang Biotechnology |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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