Correlation Between Guangdong Marubi and Shanghai Pharmaceuticals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Shanghai Pharmaceuticals Holding, you can compare the effects of market volatilities on Guangdong Marubi and Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Shanghai Pharmaceuticals.
Diversification Opportunities for Guangdong Marubi and Shanghai Pharmaceuticals
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Shanghai is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Shanghai Pharmaceuticals Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pharmaceuticals has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Shanghai Pharmaceuticals go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Shanghai Pharmaceuticals
Assuming the 90 days trading horizon Guangdong Marubi is expected to generate 2.01 times less return on investment than Shanghai Pharmaceuticals. In addition to that, Guangdong Marubi is 1.67 times more volatile than Shanghai Pharmaceuticals Holding. It trades about 0.01 of its total potential returns per unit of risk. Shanghai Pharmaceuticals Holding is currently generating about 0.03 per unit of volatility. If you would invest 1,832 in Shanghai Pharmaceuticals Holding on September 15, 2024 and sell it today you would earn a total of 342.00 from holding Shanghai Pharmaceuticals Holding or generate 18.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Shanghai Pharmaceuticals Holdi
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Shanghai Pharmaceuticals |
Guangdong Marubi and Shanghai Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Shanghai Pharmaceuticals
The main advantage of trading using opposite Guangdong Marubi and Shanghai Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals will offset losses from the drop in Shanghai Pharmaceuticals' 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 |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |