Correlation Between Guangdong Marubi and Shanghai Rendu
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Shanghai Rendu Biotechnology, you can compare the effects of market volatilities on Guangdong Marubi and Shanghai Rendu 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 Rendu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Shanghai Rendu.
Diversification Opportunities for Guangdong Marubi and Shanghai Rendu
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Shanghai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Shanghai Rendu Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rendu Biote 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 Rendu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rendu Biote has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Shanghai Rendu go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Shanghai Rendu
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the Shanghai Rendu. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Marubi Biotechnology is 1.2 times less risky than Shanghai Rendu. The stock trades about 0.0 of its potential returns per unit of risk. The Shanghai Rendu Biotechnology is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,763 in Shanghai Rendu Biotechnology on September 4, 2024 and sell it today you would lose (514.00) from holding Shanghai Rendu Biotechnology or give up 10.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Shanghai Rendu Biotechnology
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Shanghai Rendu Biote |
Guangdong Marubi and Shanghai Rendu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Shanghai Rendu
The main advantage of trading using opposite Guangdong Marubi and Shanghai Rendu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Shanghai Rendu 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 Rendu will offset losses from the drop in Shanghai Rendu's long position.| Guangdong Marubi vs. Jiujiang Shanshui Technology | Guangdong Marubi vs. Guangzhou Seagull Kitchen | Guangdong Marubi vs. Citic Guoan Wine | Guangdong Marubi vs. Vontron Technology Co |
| Shanghai Rendu vs. Kweichow Moutai Co | Shanghai Rendu vs. Shenzhen Mindray Bio Medical | Shanghai Rendu vs. Jiangsu Pacific Quartz | Shanghai Rendu vs. G bits Network Technology |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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