Correlation Between Guangdong Marubi and Longxing Chemical
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Longxing Chemical Stock, you can compare the effects of market volatilities on Guangdong Marubi and Longxing Chemical 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Longxing Chemical.
Diversification Opportunities for Guangdong Marubi and Longxing Chemical
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Longxing is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Longxing Chemical go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Longxing Chemical
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 0.6 times more return on investment than Longxing Chemical. However, Guangdong Marubi Biotechnology is 1.67 times less risky than Longxing Chemical. It trades about 0.06 of its potential returns per unit of risk. Longxing Chemical Stock is currently generating about -0.09 per unit of risk. If you would invest 3,226 in Guangdong Marubi Biotechnology on November 1, 2024 and sell it today you would earn a total of 73.00 from holding Guangdong Marubi Biotechnology or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Longxing Chemical Stock
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Longxing Chemical Stock |
Guangdong Marubi and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Longxing Chemical
The main advantage of trading using opposite Guangdong Marubi and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Guangdong Marubi vs. Yindu Kitchen Equipment | Guangdong Marubi vs. Shenzhen Clou Electronics | Guangdong Marubi vs. Bosera CMSK Industrial | Guangdong Marubi vs. Guangzhou Restaurants Group |
| Longxing Chemical vs. Yindu Kitchen Equipment | Longxing Chemical vs. Guangdong Marubi Biotechnology | Longxing Chemical vs. Guangzhou Dongfang Hotel | Longxing Chemical vs. Chahua Modern Housewares |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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