Correlation Between Guangdong Marubi and Advanced Micro
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Advanced Micro Fabrication, you can compare the effects of market volatilities on Guangdong Marubi and Advanced Micro 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 Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Advanced Micro.
Diversification Opportunities for Guangdong Marubi and Advanced Micro
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Advanced is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Advanced Micro Fabrication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Fabri 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 Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Fabri has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Advanced Micro go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Advanced Micro
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the Advanced Micro. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Marubi Biotechnology is 1.88 times less risky than Advanced Micro. The stock trades about -0.03 of its potential returns per unit of risk. The Advanced Micro Fabrication is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 19,243 in Advanced Micro Fabrication on September 1, 2024 and sell it today you would earn a total of 2,957 from holding Advanced Micro Fabrication or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Advanced Micro Fabrication
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Advanced Micro Fabri |
Guangdong Marubi and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Advanced Micro
The main advantage of trading using opposite Guangdong Marubi and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro'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 |
| Advanced Micro vs. Industrial and Commercial | Advanced Micro vs. Kweichow Moutai Co | Advanced Micro vs. Agricultural Bank of | Advanced Micro vs. China Mobile Limited |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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