Correlation Between Guangdong Marubi and Shanghai Bailian
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Shanghai Bailian Group, you can compare the effects of market volatilities on Guangdong Marubi and Shanghai Bailian 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 Bailian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Shanghai Bailian.
Diversification Opportunities for Guangdong Marubi and Shanghai Bailian
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Shanghai is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Shanghai Bailian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Bailian 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 Bailian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Bailian has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Shanghai Bailian go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Shanghai Bailian
Assuming the 90 days trading horizon Guangdong Marubi is expected to generate 1.21 times less return on investment than Shanghai Bailian. In addition to that, Guangdong Marubi is 1.23 times more volatile than Shanghai Bailian Group. It trades about 0.06 of its total potential returns per unit of risk. Shanghai Bailian Group is currently generating about 0.08 per unit of volatility. If you would invest 51.00 in Shanghai Bailian Group on September 12, 2024 and sell it today you would earn a total of 24.00 from holding Shanghai Bailian Group or generate 47.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Shanghai Bailian Group
Performance |
| Timeline |
| Guangdong Marubi Bio |
| Shanghai Bailian |
Guangdong Marubi and Shanghai Bailian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and Shanghai Bailian
The main advantage of trading using opposite Guangdong Marubi and Shanghai Bailian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Shanghai Bailian 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 Bailian will offset losses from the drop in Shanghai Bailian'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 |
| Shanghai Bailian vs. Jinhui Mining Co | Shanghai Bailian vs. Uroica Mining Safety | Shanghai Bailian vs. Guangdong Marubi Biotechnology | Shanghai Bailian vs. Shenzhen Bioeasy Biotechnology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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