Correlation Between Guangdong Marubi and Shenzhen Bioeasy
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Guangdong Marubi and Shenzhen Bioeasy 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 Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Shenzhen Bioeasy.
Diversification Opportunities for Guangdong Marubi and Shenzhen Bioeasy
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Shenzhen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Shenzhen Bioeasy
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the Shenzhen Bioeasy. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Marubi Biotechnology is 2.49 times less risky than Shenzhen Bioeasy. The stock trades about -0.19 of its potential returns per unit of risk. The Shenzhen Bioeasy Biotechnology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 888.00 in Shenzhen Bioeasy Biotechnology on August 28, 2024 and sell it today you would earn a total of 167.00 from holding Shenzhen Bioeasy Biotechnology or generate 18.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Shenzhen Bioeasy Bio |
Guangdong Marubi and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Shenzhen Bioeasy
The main advantage of trading using opposite Guangdong Marubi and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Shenzhen Bioeasy 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 Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| Guangdong Marubi vs. Longjian Road Bridge | Guangdong Marubi vs. Dazhong Transportation Group | Guangdong Marubi vs. Heilongjiang Publishing Media | Guangdong Marubi vs. Guizhou BroadcastingTV Info |
| Shenzhen Bioeasy vs. Industrial and Commercial | Shenzhen Bioeasy vs. China Construction Bank | Shenzhen Bioeasy vs. Agricultural Bank of | Shenzhen Bioeasy vs. Bank of China |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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