Correlation Between Guangdong Marubi and SI TECH
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and SI TECH Information Technology, you can compare the effects of market volatilities on Guangdong Marubi and SI TECH 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 SI TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and SI TECH.
Diversification Opportunities for Guangdong Marubi and SI TECH
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and 300608 is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and SI TECH Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SI TECH Information 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 SI TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SI TECH Information has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and SI TECH go up and down completely randomly.
Pair Corralation between Guangdong Marubi and SI TECH
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 0.93 times more return on investment than SI TECH. However, Guangdong Marubi Biotechnology is 1.08 times less risky than SI TECH. It trades about 0.01 of its potential returns per unit of risk. SI TECH Information Technology is currently generating about -0.25 per unit of risk. If you would invest 3,327 in Guangdong Marubi Biotechnology on October 18, 2024 and sell it today you would lose (26.00) from holding Guangdong Marubi Biotechnology or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. SI TECH Information Technology
Performance |
| Timeline |
| Guangdong Marubi Bio |
| SI TECH Information |
Guangdong Marubi and SI TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and SI TECH
The main advantage of trading using opposite Guangdong Marubi and SI TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, SI TECH 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 SI TECH will offset losses from the drop in SI TECH's long position.| Guangdong Marubi vs. Inspur Software Co | Guangdong Marubi vs. Guangdong Jingyi Metal | Guangdong Marubi vs. Beijing Baolande Software | Guangdong Marubi vs. Digiwin Software Co |
| SI TECH vs. China Mobile Limited | SI TECH vs. Songz Automobile Air | SI TECH vs. Ningbo Tech Bank Co | SI TECH vs. Haima Automobile Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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