Correlation Between Guangdong Marubi and China Eastern
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and China Eastern Airlines, you can compare the effects of market volatilities on Guangdong Marubi and China Eastern 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 Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and China Eastern.
Diversification Opportunities for Guangdong Marubi and China Eastern
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangdong and China is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and China Eastern go up and down completely randomly.
Pair Corralation between Guangdong Marubi and China Eastern
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 1.78 times more return on investment than China Eastern. However, Guangdong Marubi is 1.78 times more volatile than China Eastern Airlines. It trades about 0.04 of its potential returns per unit of risk. China Eastern Airlines is currently generating about -0.01 per unit of risk. If you would invest 2,702 in Guangdong Marubi Biotechnology on October 16, 2024 and sell it today you would earn a total of 650.00 from holding Guangdong Marubi Biotechnology or generate 24.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. China Eastern Airlines
Performance |
| Timeline |
| Guangdong Marubi Bio |
| China Eastern Airlines |
Guangdong Marubi and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and China Eastern
The main advantage of trading using opposite Guangdong Marubi and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, China Eastern 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 Eastern will offset losses from the drop in China Eastern's long position.| Guangdong Marubi vs. Huaxia Fund Management | Guangdong Marubi vs. JCHX Mining Management | Guangdong Marubi vs. China Reform Health | Guangdong Marubi vs. AVIC Fund Management |
| China Eastern vs. Jiangsu GDK Biotechnology | China Eastern vs. Wuhan Hvsen Biotechnology | China Eastern vs. Guangdong Marubi Biotechnology | China Eastern vs. Guangdong Shenglu Telecommunication |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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