Correlation Between Guangdong Marubi and Hithink RoyalFlush
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Hithink RoyalFlush Info, you can compare the effects of market volatilities on Guangdong Marubi and Hithink RoyalFlush 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 Hithink RoyalFlush. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Hithink RoyalFlush.
Diversification Opportunities for Guangdong Marubi and Hithink RoyalFlush
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Hithink is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Hithink RoyalFlush Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hithink RoyalFlush Info 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 Hithink RoyalFlush. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hithink RoyalFlush Info has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Hithink RoyalFlush go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Hithink RoyalFlush
Assuming the 90 days trading horizon Guangdong Marubi is expected to generate 4.18 times less return on investment than Hithink RoyalFlush. But when comparing it to its historical volatility, Guangdong Marubi Biotechnology is 1.63 times less risky than Hithink RoyalFlush. It trades about 0.03 of its potential returns per unit of risk. Hithink RoyalFlush Info is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 16,341 in Hithink RoyalFlush Info on September 12, 2024 and sell it today you would earn a total of 16,359 from holding Hithink RoyalFlush Info or generate 100.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Hithink RoyalFlush Info
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Hithink RoyalFlush Info |
Guangdong Marubi and Hithink RoyalFlush Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Hithink RoyalFlush
The main advantage of trading using opposite Guangdong Marubi and Hithink RoyalFlush positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Hithink RoyalFlush 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 Hithink RoyalFlush will offset losses from the drop in Hithink RoyalFlush's long position.| Guangdong Marubi vs. China Petroleum Chemical | Guangdong Marubi vs. PetroChina Co Ltd | Guangdong Marubi vs. China State Construction | Guangdong Marubi vs. China Railway Group |
| Hithink RoyalFlush vs. Industrial Bank Co | Hithink RoyalFlush vs. HeNan Splendor Science | Hithink RoyalFlush vs. Ping An Insurance | Hithink RoyalFlush vs. GRG Banking Equipment |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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