Correlation Between Guangdong Marubi and China United
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and China United Network, you can compare the effects of market volatilities on Guangdong Marubi and China United 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 China United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and China United.
Diversification Opportunities for Guangdong Marubi and China United
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and China United Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China United Network 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 China United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China United Network has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and China United go up and down completely randomly.
Pair Corralation between Guangdong Marubi and China United
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 1.47 times more return on investment than China United. However, Guangdong Marubi is 1.47 times more volatile than China United Network. It trades about 0.04 of its potential returns per unit of risk. China United Network is currently generating about 0.05 per unit of risk. If you would invest 2,555 in Guangdong Marubi Biotechnology on September 4, 2024 and sell it today you would earn a total of 435.00 from holding Guangdong Marubi Biotechnology or generate 17.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. China United Network
Performance |
| Timeline |
| Guangdong Marubi Bio |
| China United Network |
Guangdong Marubi and China United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and China United
The main advantage of trading using opposite Guangdong Marubi and China United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, China United 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 China United will offset losses from the drop in China United's long position.| Guangdong Marubi vs. Jiujiang Shanshui Technology | Guangdong Marubi vs. Guangzhou Seagull Kitchen | Guangdong Marubi vs. Citic Guoan Wine | Guangdong Marubi vs. Vontron Technology Co |
| China United vs. Inly Media Co | China United vs. Shenzhen Centralcon Investment | China United vs. Eastroc Beverage Group | China United vs. Heilongjiang Publishing Media |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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