Correlation Between Nanhua Bio and Guilin Seamild
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanhua Bio Medicine and Guilin Seamild Foods, you can compare the effects of market volatilities on Nanhua Bio and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanhua Bio and Guilin Seamild.
Diversification Opportunities for Nanhua Bio and Guilin Seamild
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanhua and Guilin is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Nanhua Bio Medicine and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Nanhua Bio i.e., Nanhua Bio and Guilin Seamild go up and down completely randomly.
Pair Corralation between Nanhua Bio and Guilin Seamild
Assuming the 90 days trading horizon Nanhua Bio Medicine is expected to generate 1.72 times more return on investment than Guilin Seamild. However, Nanhua Bio is 1.72 times more volatile than Guilin Seamild Foods. It trades about 0.12 of its potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.01 per unit of risk. If you would invest 643.00 in Nanhua Bio Medicine on September 3, 2024 and sell it today you would earn a total of 394.00 from holding Nanhua Bio Medicine or generate 61.28% 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. Guilin Seamild Foods
Performance |
| Timeline |
| Nanhua Bio Medicine |
| Guilin Seamild Foods |
Nanhua Bio and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanhua Bio and Guilin Seamild
The main advantage of trading using opposite Nanhua Bio and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanhua Bio position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Nanhua Bio vs. Northking Information Technology | Nanhua Bio vs. Invengo Information Technology | Nanhua Bio vs. Digital China Information | Nanhua Bio vs. Focus Media Information |
| Guilin Seamild vs. Beijing Wantai Biological | Guilin Seamild vs. Aluminum Corp of | Guilin Seamild vs. COL Digital Publishing | Guilin Seamild vs. Shaanxi Meineng Clean |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |