Correlation Between Guangdong Marubi and Kuangda Technology
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Kuangda Technology Group, you can compare the effects of market volatilities on Guangdong Marubi and Kuangda Technology 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 Kuangda Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Kuangda Technology.
Diversification Opportunities for Guangdong Marubi and Kuangda Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Kuangda is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Kuangda Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuangda Technology 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 Kuangda Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuangda Technology has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Kuangda Technology go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Kuangda Technology
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 0.74 times more return on investment than Kuangda Technology. However, Guangdong Marubi Biotechnology is 1.35 times less risky than Kuangda Technology. It trades about -0.21 of its potential returns per unit of risk. Kuangda Technology Group is currently generating about -0.17 per unit of risk. If you would invest 3,060 in Guangdong Marubi Biotechnology on August 29, 2024 and sell it today you would lose (297.00) from holding Guangdong Marubi Biotechnology or give up 9.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Kuangda Technology Group
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Kuangda Technology |
Guangdong Marubi and Kuangda Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Kuangda Technology
The main advantage of trading using opposite Guangdong Marubi and Kuangda Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Kuangda Technology 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 Kuangda Technology will offset losses from the drop in Kuangda Technology's long position.| Guangdong Marubi vs. Longjian Road Bridge | Guangdong Marubi vs. Dazhong Transportation Group | Guangdong Marubi vs. Heilongjiang Publishing Media | Guangdong Marubi vs. Guizhou BroadcastingTV Info |
| Kuangda Technology vs. BeiGene | Kuangda Technology vs. Kweichow Moutai Co | Kuangda Technology vs. Beijing Roborock Technology | Kuangda Technology vs. G bits Network 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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