Correlation Between Nanhua Bio and Shenzhen Silver
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanhua Bio Medicine and Shenzhen Silver Basis, you can compare the effects of market volatilities on Nanhua Bio and Shenzhen Silver 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 Nanhua Bio with a short position of Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanhua Bio and Shenzhen Silver.
Diversification Opportunities for Nanhua Bio and Shenzhen Silver
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanhua and Shenzhen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nanhua Bio Medicine and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis and Nanhua Bio 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 Nanhua Bio Medicine are associated (or correlated) with Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Nanhua Bio i.e., Nanhua Bio and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Nanhua Bio and Shenzhen Silver
Assuming the 90 days trading horizon Nanhua Bio Medicine is expected to generate 0.86 times more return on investment than Shenzhen Silver. However, Nanhua Bio Medicine is 1.16 times less risky than Shenzhen Silver. It trades about 0.04 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.17 per unit of risk. If you would invest 1,040 in Nanhua Bio Medicine on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Nanhua Bio Medicine or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanhua Bio Medicine vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Nanhua Bio Medicine |
| Shenzhen Silver Basis |
Nanhua Bio and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanhua Bio and Shenzhen Silver
The main advantage of trading using opposite Nanhua Bio and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanhua Bio position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Nanhua Bio vs. Jiahe Foods Industry | Nanhua Bio vs. Anji Foodstuff Co | Nanhua Bio vs. Spring Airlines Co | Nanhua Bio vs. Shantou Wanshun Package |
| Shenzhen Silver vs. Jointo Energy Investment | Shenzhen Silver vs. Harbin Air Conditioning | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Jiangsu Yueda Investment |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |