Correlation Between Guangdong Marubi and Guangdong Sanhe
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Guangdong Sanhe Pile, you can compare the effects of market volatilities on Guangdong Marubi and Guangdong Sanhe 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 Guangdong Sanhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Guangdong Sanhe.
Diversification Opportunities for Guangdong Marubi and Guangdong Sanhe
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Guangdong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Guangdong Sanhe Pile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Sanhe Pile 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 Guangdong Sanhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Sanhe Pile has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Guangdong Sanhe go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Guangdong Sanhe
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 0.57 times more return on investment than Guangdong Sanhe. However, Guangdong Marubi Biotechnology is 1.74 times less risky than Guangdong Sanhe. It trades about 0.03 of its potential returns per unit of risk. Guangdong Sanhe Pile is currently generating about -0.24 per unit of risk. If you would invest 3,277 in Guangdong Marubi Biotechnology on November 3, 2024 and sell it today you would earn a total of 22.00 from holding Guangdong Marubi Biotechnology or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Guangdong Sanhe Pile
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Guangdong Sanhe Pile |
Guangdong Marubi and Guangdong Sanhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Guangdong Sanhe
The main advantage of trading using opposite Guangdong Marubi and Guangdong Sanhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Guangdong Sanhe 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 Guangdong Sanhe will offset losses from the drop in Guangdong Sanhe's long position.| Guangdong Marubi vs. Kweichow Moutai Co | Guangdong Marubi vs. Shenzhen Mindray Bio Medical | Guangdong Marubi vs. Jiangsu Pacific Quartz | Guangdong Marubi vs. G bits Network Technology |
| Guangdong Sanhe vs. Zijin Mining Group | Guangdong Sanhe vs. Wanhua Chemical Group | Guangdong Sanhe vs. Baoshan Iron Steel | Guangdong Sanhe vs. Shandong Gold Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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