Correlation Between Guangdong Marubi and Wenzhou Hongfeng
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Wenzhou Hongfeng Electrical, you can compare the effects of market volatilities on Guangdong Marubi and Wenzhou Hongfeng 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 Wenzhou Hongfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Wenzhou Hongfeng.
Diversification Opportunities for Guangdong Marubi and Wenzhou Hongfeng
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangdong and Wenzhou is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Wenzhou Hongfeng Electrical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wenzhou Hongfeng Ele 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 Wenzhou Hongfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wenzhou Hongfeng Ele has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Wenzhou Hongfeng go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Wenzhou Hongfeng
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the Wenzhou Hongfeng. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Marubi Biotechnology is 1.28 times less risky than Wenzhou Hongfeng. The stock trades about -0.15 of its potential returns per unit of risk. The Wenzhou Hongfeng Electrical is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 565.00 in Wenzhou Hongfeng Electrical on October 26, 2024 and sell it today you would lose (29.00) from holding Wenzhou Hongfeng Electrical or give up 5.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Wenzhou Hongfeng Electrical
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Wenzhou Hongfeng Ele |
Guangdong Marubi and Wenzhou Hongfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Wenzhou Hongfeng
The main advantage of trading using opposite Guangdong Marubi and Wenzhou Hongfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Wenzhou Hongfeng 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 Wenzhou Hongfeng will offset losses from the drop in Wenzhou Hongfeng's long position.| Guangdong Marubi vs. Guangdong Jingyi Metal | Guangdong Marubi vs. Xinjiang Baodi Mining | Guangdong Marubi vs. Hengli Industrial Development | Guangdong Marubi vs. Hainan Mining Co |
| Wenzhou Hongfeng vs. Tangel Publishing | Wenzhou Hongfeng vs. Jiangsu Financial Leasing | Wenzhou Hongfeng vs. Zhejiang Publishing Media | Wenzhou Hongfeng vs. Southern PublishingMedia Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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