Correlation Between Guangdong Marubi and Oppein Home
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and Oppein Home Group, you can compare the effects of market volatilities on Guangdong Marubi and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and Oppein Home.
Diversification Opportunities for Guangdong Marubi and Oppein Home
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Oppein is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Guangdong Marubi i.e., Guangdong Marubi and Oppein Home go up and down completely randomly.
Pair Corralation between Guangdong Marubi and Oppein Home
Assuming the 90 days trading horizon Guangdong Marubi is expected to generate 1.12 times less return on investment than Oppein Home. But when comparing it to its historical volatility, Guangdong Marubi Biotechnology is 1.24 times less risky than Oppein Home. It trades about 0.24 of its potential returns per unit of risk. Oppein Home Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 4,442 in Oppein Home Group on September 19, 2024 and sell it today you would earn a total of 2,649 from holding Oppein Home Group or generate 59.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Marubi Biotechnology vs. Oppein Home Group
Performance |
Timeline |
Guangdong Marubi Bio |
Oppein Home Group |
Guangdong Marubi and Oppein Home Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Marubi and Oppein Home
The main advantage of trading using opposite Guangdong Marubi and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.Guangdong Marubi vs. Agricultural Bank of | Guangdong Marubi vs. Industrial and Commercial | Guangdong Marubi vs. Bank of China | Guangdong Marubi vs. PetroChina Co Ltd |
Oppein Home vs. Guangdong Marubi Biotechnology | Oppein Home vs. Lonkey Industrial Co | Oppein Home vs. Guangdong Qunxing Toys | Oppein Home vs. Gansu Yasheng Industrial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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