Correlation Between BeiGene and Guangdong Marubi
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By analyzing existing cross correlation between BeiGene and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on BeiGene 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 BeiGene with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of BeiGene and Guangdong Marubi.
Diversification Opportunities for BeiGene and Guangdong Marubi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BeiGene and Guangdong is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding BeiGene 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 BeiGene 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 BeiGene 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 BeiGene i.e., BeiGene and Guangdong Marubi go up and down completely randomly.
Pair Corralation between BeiGene and Guangdong Marubi
Assuming the 90 days trading horizon BeiGene is expected to generate 1.1 times more return on investment than Guangdong Marubi. However, BeiGene is 1.1 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.04 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.0 per unit of risk. If you would invest 13,035 in BeiGene on August 31, 2024 and sell it today you would earn a total of 4,565 from holding BeiGene or generate 35.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
BeiGene vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| BeiGene |
| Guangdong Marubi Bio |
BeiGene and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BeiGene and Guangdong Marubi
The main advantage of trading using opposite BeiGene and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BeiGene 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.| BeiGene vs. Vanfund Urban Investment | BeiGene vs. Jilin Chemical Fibre | BeiGene vs. Shenzhen Noposion Agrochemicals | BeiGene vs. Shenzhen Centralcon Investment |
| Guangdong Marubi vs. Huasi Agricultural Development | Guangdong Marubi vs. Shandong Mining Machinery | Guangdong Marubi vs. Huaibei Mining Holdings | Guangdong Marubi vs. Pengxin International Mining |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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