Correlation Between Anhui Huaheng and Guangdong Marubi
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Anhui Huaheng 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 Anhui Huaheng with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Guangdong Marubi.
Diversification Opportunities for Anhui Huaheng and Guangdong Marubi
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anhui and Guangdong is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology 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 Anhui Huaheng 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 Anhui Huaheng 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 Anhui Huaheng i.e., Anhui Huaheng and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Guangdong Marubi
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Guangdong Marubi. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaheng Biotechnology is 1.06 times less risky than Guangdong Marubi. The stock trades about -0.4 of its potential returns per unit of risk. The Guangdong Marubi Biotechnology is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 3,434 in Guangdong Marubi Biotechnology on October 25, 2024 and sell it today you would lose (199.00) from holding Guangdong Marubi Biotechnology or give up 5.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Guangdong Marubi Bio |
Anhui Huaheng and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Guangdong Marubi
The main advantage of trading using opposite Anhui Huaheng and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng 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.| Anhui Huaheng vs. Holitech Technology Co | Anhui Huaheng vs. Kangping Technology Co | Anhui Huaheng vs. Olympic Circuit Technology | Anhui Huaheng vs. HanS Laser Tech |
| Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Postal Savings Bank | Guangdong Marubi vs. Bank of Communications | Guangdong Marubi vs. China Merchants Bank |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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