Correlation Between Guangdong Marubi and Shandong Sanyuan
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Guangdong Marubi and Shandong Sanyuan 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 Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Shandong Sanyuan.
Diversification Opportunities for Guangdong Marubi and Shandong Sanyuan
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Shandong is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan 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 Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Shandong Sanyuan
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the Shandong Sanyuan. In addition to that, Guangdong Marubi is 1.15 times more volatile than Shandong Sanyuan Biotechnology. It trades about -0.12 of its total potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.13 per unit of volatility. If you would invest 2,728 in Shandong Sanyuan Biotechnology on October 25, 2024 and sell it today you would lose (142.00) from holding Shandong Sanyuan Biotechnology or give up 5.21% 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. Shandong Sanyuan Biotechnology
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Shandong Sanyuan Bio |
Guangdong Marubi and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Shandong Sanyuan
The main advantage of trading using opposite Guangdong Marubi and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Postal Savings Bank | Guangdong Marubi vs. Bank of Communications | Guangdong Marubi vs. China Merchants Bank |
| Shandong Sanyuan vs. Agricultural Bank of | Shandong Sanyuan vs. Postal Savings Bank | Shandong Sanyuan vs. Bank of Communications | Shandong Sanyuan vs. China Merchants Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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