Correlation Between Guangdong Marubi and Sino Platinum
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Sino Platinum Metals Co, you can compare the effects of market volatilities on Guangdong Marubi and Sino Platinum 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 Sino Platinum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Sino Platinum.
Diversification Opportunities for Guangdong Marubi and Sino Platinum
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Sino is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Sino Platinum Metals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Platinum Metals 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 Sino Platinum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Platinum Metals has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Sino Platinum go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Sino Platinum
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 3.28 times more return on investment than Sino Platinum. However, Guangdong Marubi is 3.28 times more volatile than Sino Platinum Metals Co. It trades about -0.05 of its potential returns per unit of risk. Sino Platinum Metals Co is currently generating about -0.24 per unit of risk. If you would invest 3,358 in Guangdong Marubi Biotechnology on October 15, 2024 and sell it today you would lose (157.00) from holding Guangdong Marubi Biotechnology or give up 4.68% 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. Sino Platinum Metals Co
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Sino Platinum Metals |
Guangdong Marubi and Sino Platinum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Sino Platinum
The main advantage of trading using opposite Guangdong Marubi and Sino Platinum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Sino Platinum 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 Sino Platinum will offset losses from the drop in Sino Platinum's long position.| Guangdong Marubi vs. Suzhou Weizhixiang Food | Guangdong Marubi vs. V V Food | Guangdong Marubi vs. Jinhui Mining Co | Guangdong Marubi vs. Uroica Mining Safety |
| Sino Platinum vs. Guangdong Marubi Biotechnology | Sino Platinum vs. YiDong Electronics Technology | Sino Platinum vs. TongFu Microelectronics Co | Sino Platinum vs. Epoxy Base Electronic |
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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