Correlation Between Guangdong Marubi and Zhengzhou Yutong
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Zhengzhou Yutong Bus, you can compare the effects of market volatilities on Guangdong Marubi and Zhengzhou Yutong 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 Zhengzhou Yutong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Zhengzhou Yutong.
Diversification Opportunities for Guangdong Marubi and Zhengzhou Yutong
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Zhengzhou is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Zhengzhou Yutong Bus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Yutong Bus 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 Zhengzhou Yutong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Yutong Bus has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Zhengzhou Yutong go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Zhengzhou Yutong
Assuming the 90 days trading horizon Guangdong Marubi is expected to generate 2.23 times less return on investment than Zhengzhou Yutong. In addition to that, Guangdong Marubi is 1.02 times more volatile than Zhengzhou Yutong Bus. It trades about 0.04 of its total potential returns per unit of risk. Zhengzhou Yutong Bus is currently generating about 0.1 per unit of volatility. If you would invest 1,316 in Zhengzhou Yutong Bus on September 14, 2024 and sell it today you would earn a total of 1,030 from holding Zhengzhou Yutong Bus or generate 78.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Zhengzhou Yutong Bus
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Zhengzhou Yutong Bus |
Guangdong Marubi and Zhengzhou Yutong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Zhengzhou Yutong
The main advantage of trading using opposite Guangdong Marubi and Zhengzhou Yutong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Zhengzhou Yutong 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 Zhengzhou Yutong will offset losses from the drop in Zhengzhou Yutong's long position.| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Industrial and Commercial | Guangdong Marubi vs. Bank of China | Guangdong Marubi vs. PetroChina Co Ltd |
| Zhengzhou Yutong vs. Ningbo MedicalSystem Biotechnology | Zhengzhou Yutong vs. Jiangsu GDK Biotechnology | Zhengzhou Yutong vs. Guosheng Financial Holding | Zhengzhou Yutong vs. Guangdong Marubi 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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