Correlation Between Nanhua Bio and Flat Glass
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By analyzing existing cross correlation between Nanhua Bio Medicine and Flat Glass Group, you can compare the effects of market volatilities on Nanhua Bio and Flat Glass 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 Flat Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanhua Bio and Flat Glass.
Diversification Opportunities for Nanhua Bio and Flat Glass
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanhua and Flat is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nanhua Bio Medicine and Flat Glass Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flat Glass Group 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 Flat Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flat Glass Group has no effect on the direction of Nanhua Bio i.e., Nanhua Bio and Flat Glass go up and down completely randomly.
Pair Corralation between Nanhua Bio and Flat Glass
Assuming the 90 days trading horizon Nanhua Bio Medicine is expected to generate 0.89 times more return on investment than Flat Glass. However, Nanhua Bio Medicine is 1.12 times less risky than Flat Glass. It trades about 0.01 of its potential returns per unit of risk. Flat Glass Group is currently generating about -0.14 per unit of risk. If you would invest 1,035 in Nanhua Bio Medicine on September 1, 2024 and sell it today you would lose (5.00) from holding Nanhua Bio Medicine or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanhua Bio Medicine vs. Flat Glass Group
Performance |
| Timeline |
| Nanhua Bio Medicine |
| Flat Glass Group |
Nanhua Bio and Flat Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanhua Bio and Flat Glass
The main advantage of trading using opposite Nanhua Bio and Flat Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanhua Bio position performs unexpectedly, Flat Glass 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 Flat Glass will offset losses from the drop in Flat Glass' long position.| Nanhua Bio vs. Beijing Bewinner Communications | Nanhua Bio vs. Yangmei Chemical Co | Nanhua Bio vs. Liuzhou Chemical Industry | Nanhua Bio vs. Anhui Huaertai Chemical |
| Flat Glass vs. Metro Investment Development | Flat Glass vs. Nuode Investment Co | Flat Glass vs. Everjoy Health Group | Flat Glass vs. Zhongrun Resources 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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