Correlation Between Suzhou Weizhixiang and Guangdong Marubi
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Suzhou Weizhixiang and Guangdong Marubi 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 Suzhou Weizhixiang with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Guangdong Marubi.
Diversification Opportunities for Suzhou Weizhixiang and Guangdong Marubi
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Guangdong is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio and Suzhou Weizhixiang 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 Suzhou Weizhixiang Food are associated (or correlated) with Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Guangdong Marubi
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to under-perform the Guangdong Marubi. In addition to that, Suzhou Weizhixiang is 1.06 times more volatile than Guangdong Marubi Biotechnology. It trades about -0.04 of its total potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.01 per unit of volatility. If you would invest 3,202 in Guangdong Marubi Biotechnology on October 15, 2024 and sell it today you would lose (1.00) from holding Guangdong Marubi Biotechnology or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Guangdong Marubi Bio |
Suzhou Weizhixiang and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Guangdong Marubi
The main advantage of trading using opposite Suzhou Weizhixiang and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Suzhou Weizhixiang vs. Jinhui Mining Co | Suzhou Weizhixiang vs. Pengxin International Mining | Suzhou Weizhixiang vs. Shandong Longquan Pipeline | Suzhou Weizhixiang vs. Vats Liquor Chain |
| Guangdong Marubi vs. Jiangsu Financial Leasing | Guangdong Marubi vs. Ningbo Tech Bank Co | Guangdong Marubi vs. Shanghai Ziyan Foods | Guangdong Marubi vs. HeNan Splendor Science |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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