Correlation Between Dazhong Transportation and Guangdong Marubi
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By analyzing existing cross correlation between Dazhong Transportation Group and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Dazhong Transportation 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 Dazhong Transportation with a short position of Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dazhong Transportation and Guangdong Marubi.
Diversification Opportunities for Dazhong Transportation and Guangdong Marubi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dazhong and Guangdong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dazhong Transportation Group 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 Dazhong Transportation 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 Dazhong Transportation Group 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 Dazhong Transportation i.e., Dazhong Transportation and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Dazhong Transportation and Guangdong Marubi
Assuming the 90 days trading horizon Dazhong Transportation Group is expected to generate 1.27 times more return on investment than Guangdong Marubi. However, Dazhong Transportation is 1.27 times more volatile than Guangdong Marubi Biotechnology. It trades about 0.01 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 26.00 in Dazhong Transportation Group on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Dazhong Transportation Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dazhong Transportation Group vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Dazhong Transportation |
| Guangdong Marubi Bio |
Dazhong Transportation and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dazhong Transportation and Guangdong Marubi
The main advantage of trading using opposite Dazhong Transportation and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dazhong Transportation 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.| Dazhong Transportation vs. Uxi Unicomp Technology | Dazhong Transportation vs. Jiaozuo Wanfang Aluminum | Dazhong Transportation vs. CITIC Metal Co | Dazhong Transportation vs. Linewell Software Co |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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