Correlation Between Guangdong Marubi and China State
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and China State Construction, you can compare the effects of market volatilities on Guangdong Marubi and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and China State.
Diversification Opportunities for Guangdong Marubi and China State
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and China is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and China State go up and down completely randomly.
Pair Corralation between Guangdong Marubi and China State
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 2.05 times more return on investment than China State. However, Guangdong Marubi is 2.05 times more volatile than China State Construction. It trades about 0.0 of its potential returns per unit of risk. China State Construction is currently generating about -0.03 per unit of risk. If you would invest 3,114 in Guangdong Marubi Biotechnology on September 12, 2024 and sell it today you would lose (16.00) from holding Guangdong Marubi Biotechnology or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. China State Construction
Performance |
| Timeline |
| Guangdong Marubi Bio |
| China State Construction |
Guangdong Marubi and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and China State
The main advantage of trading using opposite Guangdong Marubi and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Guangdong Marubi vs. China Petroleum Chemical | Guangdong Marubi vs. PetroChina Co Ltd | Guangdong Marubi vs. China State Construction | Guangdong Marubi vs. China Railway Group |
| China State vs. Xilinmen Furniture Co | China State vs. Nanjing OLO Home | China State vs. Iat Automobile Technology | China State vs. Fiberhome Telecommunication Technologies |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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