Correlation Between Guangdong Marubi and Shenzhen
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Shenzhen AV Display Co, you can compare the effects of market volatilities on Guangdong Marubi and Shenzhen 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 Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Shenzhen.
Diversification Opportunities for Guangdong Marubi and Shenzhen
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Shenzhen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Shenzhen go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Shenzhen
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 1.02 times more return on investment than Shenzhen. However, Guangdong Marubi is 1.02 times more volatile than Shenzhen AV Display Co. It trades about -0.02 of its potential returns per unit of risk. Shenzhen AV Display Co is currently generating about -0.22 per unit of risk. If you would invest 3,278 in Guangdong Marubi Biotechnology on October 13, 2024 and sell it today you would lose (77.00) from holding Guangdong Marubi Biotechnology or give up 2.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Shenzhen AV Display |
Guangdong Marubi and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Shenzhen
The main advantage of trading using opposite Guangdong Marubi and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen's long position.| Guangdong Marubi vs. Jiangsu Jinling Sports | Guangdong Marubi vs. Shuhua Sports Co | Guangdong Marubi vs. Hubeiyichang Transportation Group | Guangdong Marubi vs. Omnijoi Media Corp |
| Shenzhen vs. Guangdong Marubi Biotechnology | Shenzhen vs. Anhui Huaheng Biotechnology | Shenzhen vs. Yili Chuanning Biotechnology | Shenzhen vs. Shenzhen Bioeasy Biotechnology |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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