Correlation Between Guangdong Marubi and Great Sun
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Great Sun Foods Co, you can compare the effects of market volatilities on Guangdong Marubi and Great Sun 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 Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Great Sun.
Diversification Opportunities for Guangdong Marubi and Great Sun
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangdong and Great is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods 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 Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Great Sun go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Great Sun
Assuming the 90 days trading horizon Guangdong Marubi is expected to generate 4.27 times less return on investment than Great Sun. But when comparing it to its historical volatility, Guangdong Marubi Biotechnology is 1.26 times less risky than Great Sun. It trades about 0.02 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Great Sun Foods Co on December 8, 2024 and sell it today you would earn a total of 19.00 from holding Great Sun Foods Co or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Great Sun Foods Co
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Great Sun Foods |
Guangdong Marubi and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Great Sun
The main advantage of trading using opposite Guangdong Marubi and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Great Sun 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 Great Sun will offset losses from the drop in Great Sun's long position.| Guangdong Marubi vs. Haima Automobile Group | Guangdong Marubi vs. Ningbo Fangzheng Automobile | Guangdong Marubi vs. Highbroad Advanced Material | Guangdong Marubi vs. Zotye Automobile Co |
| Great Sun vs. Xinxiang Chemical Fiber | Great Sun vs. Ningbo Bohui Chemical | Great Sun vs. By health | Great Sun vs. Healthcare Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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