Correlation Between Guangdong Marubi and Bingshan Refrigeration
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Bingshan Refrigeration and, you can compare the effects of market volatilities on Guangdong Marubi and Bingshan Refrigeration 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 Bingshan Refrigeration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Bingshan Refrigeration.
Diversification Opportunities for Guangdong Marubi and Bingshan Refrigeration
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Bingshan is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Bingshan Refrigeration and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bingshan Refrigeration 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 Bingshan Refrigeration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bingshan Refrigeration has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Bingshan Refrigeration go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Bingshan Refrigeration
Assuming the 90 days trading horizon Guangdong Marubi is expected to generate 1.26 times less return on investment than Bingshan Refrigeration. In addition to that, Guangdong Marubi is 1.34 times more volatile than Bingshan Refrigeration and. It trades about 0.03 of its total potential returns per unit of risk. Bingshan Refrigeration and is currently generating about 0.04 per unit of volatility. If you would invest 171.00 in Bingshan Refrigeration and on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Bingshan Refrigeration and or generate 1.17% 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. Bingshan Refrigeration and
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Bingshan Refrigeration |
Guangdong Marubi and Bingshan Refrigeration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Bingshan Refrigeration
The main advantage of trading using opposite Guangdong Marubi and Bingshan Refrigeration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Bingshan Refrigeration 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 Bingshan Refrigeration will offset losses from the drop in Bingshan Refrigeration'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 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |