Correlation Between Guangdong Marubi and Longjian Road
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Longjian Road Bridge, you can compare the effects of market volatilities on Guangdong Marubi and Longjian Road 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 Longjian Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Longjian Road.
Diversification Opportunities for Guangdong Marubi and Longjian Road
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Longjian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Longjian Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longjian Road Bridge 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 Longjian Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longjian Road Bridge has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Longjian Road go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Longjian Road
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the Longjian Road. In addition to that, Guangdong Marubi is 1.19 times more volatile than Longjian Road Bridge. It trades about -0.03 of its total potential returns per unit of risk. Longjian Road Bridge is currently generating about 0.09 per unit of volatility. If you would invest 382.00 in Longjian Road Bridge on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Longjian Road Bridge or generate 3.4% 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. Longjian Road Bridge
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Longjian Road Bridge |
Guangdong Marubi and Longjian Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Longjian Road
The main advantage of trading using opposite Guangdong Marubi and Longjian Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Longjian Road 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 Longjian Road will offset losses from the drop in Longjian Road's long position.| Guangdong Marubi vs. Industrial and Commercial | Guangdong Marubi vs. Kweichow Moutai Co | Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. China Mobile Limited |
| Longjian Road vs. 159681 | Longjian Road vs. 159005 | Longjian Road vs. Loctek Ergonomic Technology | Longjian Road vs. 516220 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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