Correlation Between Guangdong Marubi and Zhejiang Construction
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Zhejiang Construction Investment, you can compare the effects of market volatilities on Guangdong Marubi and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Zhejiang Construction.
Diversification Opportunities for Guangdong Marubi and Zhejiang Construction
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Zhejiang is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Zhejiang Construction
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 1.92 times more return on investment than Zhejiang Construction. However, Guangdong Marubi is 1.92 times more volatile than Zhejiang Construction Investment. It trades about 0.15 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.65 per unit of risk. If you would invest 2,927 in Guangdong Marubi Biotechnology on October 10, 2024 and sell it today you would earn a total of 313.00 from holding Guangdong Marubi Biotechnology or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Zhejiang Construction Investme
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Zhejiang Construction |
Guangdong Marubi and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Zhejiang Construction
The main advantage of trading using opposite Guangdong Marubi and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Guangdong Marubi vs. Guocheng Mining Co | Guangdong Marubi vs. Quectel Wireless Solutions | Guangdong Marubi vs. Dongfeng Automobile Co | Guangdong Marubi vs. Beijing HuaYuanYiTong Thermal |
| Zhejiang Construction vs. Fibocom Wireless | Zhejiang Construction vs. Songz Automobile Air | Zhejiang Construction vs. Sublime China Information | Zhejiang Construction vs. Iat Automobile 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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