Correlation Between Guangdong Marubi and SGSG Sciencetechnolog
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and SGSG Sciencetechnology Co, you can compare the effects of market volatilities on Guangdong Marubi and SGSG Sciencetechnolog 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 SGSG Sciencetechnolog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and SGSG Sciencetechnolog.
Diversification Opportunities for Guangdong Marubi and SGSG Sciencetechnolog
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and SGSG is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and SGSG Sciencetechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGSG Sciencetechnology 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 SGSG Sciencetechnolog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGSG Sciencetechnology has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and SGSG Sciencetechnolog go up and down completely randomly.
Pair Corralation between Guangdong Marubi and SGSG Sciencetechnolog
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the SGSG Sciencetechnolog. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Marubi Biotechnology is 4.03 times less risky than SGSG Sciencetechnolog. The stock trades about -0.04 of its potential returns per unit of risk. The SGSG Sciencetechnology Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,259 in SGSG Sciencetechnology Co on October 24, 2024 and sell it today you would earn a total of 294.00 from holding SGSG Sciencetechnology Co or generate 5.59% 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. SGSG Sciencetechnology Co
Performance |
| Timeline |
| Guangdong Marubi Bio |
| SGSG Sciencetechnology |
Guangdong Marubi and SGSG Sciencetechnolog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and SGSG Sciencetechnolog
The main advantage of trading using opposite Guangdong Marubi and SGSG Sciencetechnolog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, SGSG Sciencetechnolog 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 SGSG Sciencetechnolog will offset losses from the drop in SGSG Sciencetechnolog'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 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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