Correlation Between Cabio Biotech and GUOMAI Culture
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By analyzing existing cross correlation between Cabio Biotech Wuhan and GUOMAI Culture Media, you can compare the effects of market volatilities on Cabio Biotech and GUOMAI Culture 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 Cabio Biotech with a short position of GUOMAI Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and GUOMAI Culture.
Diversification Opportunities for Cabio Biotech and GUOMAI Culture
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cabio and GUOMAI is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan and GUOMAI Culture Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOMAI Culture Media and Cabio Biotech 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 Cabio Biotech Wuhan are associated (or correlated) with GUOMAI Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOMAI Culture Media has no effect on the direction of Cabio Biotech i.e., Cabio Biotech and GUOMAI Culture go up and down completely randomly.
Pair Corralation between Cabio Biotech and GUOMAI Culture
Assuming the 90 days trading horizon Cabio Biotech is expected to generate 1.27 times less return on investment than GUOMAI Culture. But when comparing it to its historical volatility, Cabio Biotech Wuhan is 1.4 times less risky than GUOMAI Culture. It trades about 0.29 of its potential returns per unit of risk. GUOMAI Culture Media is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,311 in GUOMAI Culture Media on November 6, 2024 and sell it today you would earn a total of 317.00 from holding GUOMAI Culture Media or generate 13.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. GUOMAI Culture Media
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| GUOMAI Culture Media |
Cabio Biotech and GUOMAI Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and GUOMAI Culture
The main advantage of trading using opposite Cabio Biotech and GUOMAI Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech position performs unexpectedly, GUOMAI Culture 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 GUOMAI Culture will offset losses from the drop in GUOMAI Culture's long position.| Cabio Biotech vs. Yili Chuanning Biotechnology | Cabio Biotech vs. TianJin 712 Communication | Cabio Biotech vs. Allwin Telecommunication Co | Cabio Biotech vs. Maccura Biotechnology Co |
| GUOMAI Culture vs. Hainan Mining Co | GUOMAI Culture vs. Guangdong Silvere Sci | GUOMAI Culture vs. Guocheng Mining Co | GUOMAI Culture vs. Dymatic Chemicals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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