Correlation Between Shanghai Rightongene and Guangdong Marubi
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By analyzing existing cross correlation between Shanghai Rightongene Biotechnology and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Shanghai Rightongene 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 Shanghai Rightongene with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rightongene and Guangdong Marubi.
Diversification Opportunities for Shanghai Rightongene and Guangdong Marubi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rightongene Biotechno 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 Shanghai Rightongene 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 Shanghai Rightongene Biotechnology 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 Shanghai Rightongene i.e., Shanghai Rightongene and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Shanghai Rightongene and Guangdong Marubi
Assuming the 90 days trading horizon Shanghai Rightongene Biotechnology is expected to generate 2.34 times more return on investment than Guangdong Marubi. However, Shanghai Rightongene is 2.34 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.14 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about -0.21 per unit of risk. If you would invest 1,856 in Shanghai Rightongene Biotechnology on August 29, 2024 and sell it today you would earn a total of 251.00 from holding Shanghai Rightongene Biotechnology or generate 13.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rightongene Biotechno vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Shanghai Rightongene |
| Guangdong Marubi Bio |
Shanghai Rightongene and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rightongene and Guangdong Marubi
The main advantage of trading using opposite Shanghai Rightongene and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rightongene 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.| Shanghai Rightongene vs. Industrial and Commercial | Shanghai Rightongene vs. China Construction Bank | Shanghai Rightongene vs. Agricultural Bank of | Shanghai Rightongene vs. Bank of China |
| Guangdong Marubi vs. Longjian Road Bridge | Guangdong Marubi vs. Dazhong Transportation Group | Guangdong Marubi vs. Heilongjiang Publishing Media | Guangdong Marubi vs. Guizhou BroadcastingTV Info |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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