Correlation Between Guangdong Marubi and Zhejiang Juhua
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Zhejiang Juhua Co, you can compare the effects of market volatilities on Guangdong Marubi and Zhejiang Juhua 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 Juhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Zhejiang Juhua.
Diversification Opportunities for Guangdong Marubi and Zhejiang Juhua
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Zhejiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Zhejiang Juhua Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Juhua 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 Juhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Juhua has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Zhejiang Juhua go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Zhejiang Juhua
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the Zhejiang Juhua. In addition to that, Guangdong Marubi is 1.01 times more volatile than Zhejiang Juhua Co. It trades about -0.01 of its total potential returns per unit of risk. Zhejiang Juhua Co is currently generating about 0.04 per unit of volatility. If you would invest 1,576 in Zhejiang Juhua Co on September 3, 2024 and sell it today you would earn a total of 661.00 from holding Zhejiang Juhua Co or generate 41.94% return on investment 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 Juhua Co
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Zhejiang Juhua |
Guangdong Marubi and Zhejiang Juhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Zhejiang Juhua
The main advantage of trading using opposite Guangdong Marubi and Zhejiang Juhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Zhejiang Juhua 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 Juhua will offset losses from the drop in Zhejiang Juhua's long position.| Guangdong Marubi vs. Beijing Wantai Biological | Guangdong Marubi vs. Aluminum Corp of | Guangdong Marubi vs. COL Digital Publishing | Guangdong Marubi vs. Shaanxi Meineng Clean |
| Zhejiang Juhua vs. Guangdong Marubi Biotechnology | Zhejiang Juhua vs. Central Plains Environment | Zhejiang Juhua vs. Shanghai Rendu Biotechnology | Zhejiang Juhua vs. Maccura Biotechnology Co |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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