Correlation Between Guangdong Marubi and Zhejiang Yayi
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Guangdong Marubi and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Zhejiang Yayi.
Diversification Opportunities for Guangdong Marubi and Zhejiang Yayi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Zhejiang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Zhejiang Yayi
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the Zhejiang Yayi. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Marubi Biotechnology is 1.27 times less risky than Zhejiang Yayi. The stock trades about -0.19 of its potential returns per unit of risk. The Zhejiang Yayi Metal is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,572 in Zhejiang Yayi Metal on August 28, 2024 and sell it today you would lose (28.00) from holding Zhejiang Yayi Metal or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Zhejiang Yayi Metal |
Guangdong Marubi and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Zhejiang Yayi
The main advantage of trading using opposite Guangdong Marubi and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi'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 |
| Zhejiang Yayi vs. Chongqing Brewery Co | Zhejiang Yayi vs. Guangzhou Zhujiang Brewery | Zhejiang Yayi vs. Beijing Yanjing Brewery | Zhejiang Yayi vs. Jilin Jlu Communication |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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