Correlation Between Guangdong Marubi and Shanghai Rightongene
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Shanghai Rightongene Biotechnology, you can compare the effects of market volatilities on Guangdong Marubi and Shanghai Rightongene 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 Rightongene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Shanghai Rightongene.
Diversification Opportunities for Guangdong Marubi and Shanghai Rightongene
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Shanghai Rightongene Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rightongene 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 Rightongene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rightongene has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Shanghai Rightongene go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Shanghai Rightongene
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the Shanghai Rightongene. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Marubi Biotechnology is 1.94 times less risky than Shanghai Rightongene. The stock trades about -0.13 of its potential returns per unit of risk. The Shanghai Rightongene Biotechnology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,899 in Shanghai Rightongene Biotechnology on August 25, 2024 and sell it today you would earn a total of 185.00 from holding Shanghai Rightongene Biotechnology or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Shanghai Rightongene Biotechno
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Shanghai Rightongene |
Guangdong Marubi and Shanghai Rightongene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Shanghai Rightongene
The main advantage of trading using opposite Guangdong Marubi and Shanghai Rightongene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Shanghai Rightongene 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 Rightongene will offset losses from the drop in Shanghai Rightongene's long position.| Guangdong Marubi vs. Guangdong Brandmax Marketing | Guangdong Marubi vs. AVCON Information Tech | Guangdong Marubi vs. Focus Media Information | Guangdong Marubi vs. Gansu Huangtai Wine marketing |
| Shanghai Rightongene vs. Industrial and Commercial | Shanghai Rightongene vs. China Construction Bank | Shanghai Rightongene vs. Agricultural Bank of | Shanghai Rightongene vs. Bank of China |
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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