Correlation Between Guangdong Marubi and Ningbo Ligong
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Ningbo Ligong Online, you can compare the effects of market volatilities on Guangdong Marubi and Ningbo Ligong 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 Guangdong Marubi with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Ningbo Ligong.
Diversification Opportunities for Guangdong Marubi and Ningbo Ligong
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Ningbo is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and Guangdong Marubi 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 Guangdong Marubi Biotechnology are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Ningbo Ligong
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to generate 0.99 times more return on investment than Ningbo Ligong. However, Guangdong Marubi Biotechnology is 1.01 times less risky than Ningbo Ligong. It trades about 0.05 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about 0.03 per unit of risk. If you would invest 2,674 in Guangdong Marubi Biotechnology on September 25, 2024 and sell it today you would earn a total of 737.00 from holding Guangdong Marubi Biotechnology or generate 27.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Ningbo Ligong Online
Performance |
Timeline |
Guangdong Marubi Bio |
Ningbo Ligong Online |
Guangdong Marubi and Ningbo Ligong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Marubi and Ningbo Ligong
The main advantage of trading using opposite Guangdong Marubi and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.Guangdong Marubi vs. Shanghai Jinfeng Wine | Guangdong Marubi vs. Guangdong Qunxing Toys | Guangdong Marubi vs. Caihong Display Devices | Guangdong Marubi vs. Runjian Communication Co |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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