Correlation Between Nanhua Bio and Sichuan Newsnet
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By analyzing existing cross correlation between Nanhua Bio Medicine and Sichuan Newsnet Media, you can compare the effects of market volatilities on Nanhua Bio and Sichuan Newsnet 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 Sichuan Newsnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanhua Bio and Sichuan Newsnet.
Diversification Opportunities for Nanhua Bio and Sichuan Newsnet
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanhua and Sichuan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Nanhua Bio Medicine and Sichuan Newsnet Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Newsnet Media 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 Sichuan Newsnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Newsnet Media has no effect on the direction of Nanhua Bio i.e., Nanhua Bio and Sichuan Newsnet go up and down completely randomly.
Pair Corralation between Nanhua Bio and Sichuan Newsnet
Assuming the 90 days trading horizon Nanhua Bio Medicine is expected to generate 1.14 times more return on investment than Sichuan Newsnet. However, Nanhua Bio is 1.14 times more volatile than Sichuan Newsnet Media. It trades about 0.05 of its potential returns per unit of risk. Sichuan Newsnet Media is currently generating about 0.05 per unit of risk. If you would invest 693.00 in Nanhua Bio Medicine on November 1, 2024 and sell it today you would earn a total of 192.00 from holding Nanhua Bio Medicine or generate 27.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanhua Bio Medicine vs. Sichuan Newsnet Media
Performance |
| Timeline |
| Nanhua Bio Medicine |
| Sichuan Newsnet Media |
Nanhua Bio and Sichuan Newsnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanhua Bio and Sichuan Newsnet
The main advantage of trading using opposite Nanhua Bio and Sichuan Newsnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanhua Bio position performs unexpectedly, Sichuan Newsnet 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 Sichuan Newsnet will offset losses from the drop in Sichuan Newsnet's long position.| Nanhua Bio vs. Jinling Hotel Corp | Nanhua Bio vs. Shandong Polymer Biochemicals | Nanhua Bio vs. Huatian Hotel Group | Nanhua Bio vs. Miracll Chemicals Co |
| Sichuan Newsnet vs. Allgens Medical Technology | Sichuan Newsnet vs. Double Medical Technology | Sichuan Newsnet vs. Shandong Intco Medical | Sichuan Newsnet vs. Shenzhen Glory Medical |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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