Correlation Between Guangdong Marubi and Shenzhen Silver
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Shenzhen Silver Basis, you can compare the effects of market volatilities on Guangdong Marubi and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Shenzhen Silver.
Diversification Opportunities for Guangdong Marubi and Shenzhen Silver
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Shenzhen is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Shenzhen Silver
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 0.69 times more return on investment than Shenzhen Silver. However, Guangdong Marubi Biotechnology is 1.46 times less risky than Shenzhen Silver. It trades about -0.04 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.13 per unit of risk. If you would invest 3,411 in Guangdong Marubi Biotechnology on October 24, 2024 and sell it today you would lose (66.00) from holding Guangdong Marubi Biotechnology or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Shenzhen Silver Basis |
Guangdong Marubi and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Shenzhen Silver
The main advantage of trading using opposite Guangdong Marubi and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| Guangdong Marubi vs. Porton Fine Chemicals | Guangdong Marubi vs. Ligao Foods CoLtd | Guangdong Marubi vs. Jiajia Food Group | Guangdong Marubi vs. Shanghai Material Trading |
| Shenzhen Silver vs. Guangdong Marubi Biotechnology | Shenzhen Silver vs. Maccura Biotechnology Co | Shenzhen Silver vs. Wuhan Hvsen Biotechnology | Shenzhen Silver vs. Success Electronics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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