Correlation Between Guangdong Marubi and Jiangsu Yueda
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Guangdong Marubi and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Jiangsu Yueda.
Diversification Opportunities for Guangdong Marubi and Jiangsu Yueda
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Jiangsu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Jiangsu Yueda
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 0.85 times more return on investment than Jiangsu Yueda. However, Guangdong Marubi Biotechnology is 1.18 times less risky than Jiangsu Yueda. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.02 per unit of risk. If you would invest 2,663 in Guangdong Marubi Biotechnology on September 14, 2024 and sell it today you would earn a total of 615.00 from holding Guangdong Marubi Biotechnology or generate 23.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Jiangsu Yueda Investment |
Guangdong Marubi and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Jiangsu Yueda
The main advantage of trading using opposite Guangdong Marubi and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda'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 |
| Jiangsu Yueda vs. Lutian Machinery Co | Jiangsu Yueda vs. China Longyuan Power | Jiangsu Yueda vs. PetroChina Co Ltd | Jiangsu Yueda vs. Bank of China |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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