Correlation Between Guangdong Marubi and Fuzhou Rockchip
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Fuzhou Rockchip Electronics, you can compare the effects of market volatilities on Guangdong Marubi and Fuzhou Rockchip 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 Fuzhou Rockchip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Fuzhou Rockchip.
Diversification Opportunities for Guangdong Marubi and Fuzhou Rockchip
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Fuzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Fuzhou Rockchip Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuzhou Rockchip Elec 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 Fuzhou Rockchip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuzhou Rockchip Elec has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Fuzhou Rockchip go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Fuzhou Rockchip
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 1.0 times more return on investment than Fuzhou Rockchip. However, Guangdong Marubi Biotechnology is 1.0 times less risky than Fuzhou Rockchip. It trades about 0.07 of its potential returns per unit of risk. Fuzhou Rockchip Electronics is currently generating about 0.04 per unit of risk. If you would invest 3,117 in Guangdong Marubi Biotechnology on September 13, 2024 and sell it today you would earn a total of 115.00 from holding Guangdong Marubi Biotechnology or generate 3.69% 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. Fuzhou Rockchip Electronics
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Fuzhou Rockchip Elec |
Guangdong Marubi and Fuzhou Rockchip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Fuzhou Rockchip
The main advantage of trading using opposite Guangdong Marubi and Fuzhou Rockchip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Fuzhou Rockchip 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 Fuzhou Rockchip will offset losses from the drop in Fuzhou Rockchip's long position.| Guangdong Marubi vs. Tongling Nonferrous Metals | Guangdong Marubi vs. Sino Platinum Metals Co | Guangdong Marubi vs. CITIC Metal Co | Guangdong Marubi vs. Zhongshan Public Utilities |
| Fuzhou Rockchip vs. Nanjing Putian Telecommunications | Fuzhou Rockchip vs. Tianjin Realty Development | Fuzhou Rockchip vs. Kangyue Technology Co | Fuzhou Rockchip vs. Shenzhen Hifuture Electric |
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.
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