Correlation Between Nanhua Bio and Piotech
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By analyzing existing cross correlation between Nanhua Bio Medicine and Piotech Inc A, you can compare the effects of market volatilities on Nanhua Bio and Piotech 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 Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanhua Bio and Piotech.
Diversification Opportunities for Nanhua Bio and Piotech
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nanhua and Piotech is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Nanhua Bio Medicine and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A 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 Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of Nanhua Bio i.e., Nanhua Bio and Piotech go up and down completely randomly.
Pair Corralation between Nanhua Bio and Piotech
Assuming the 90 days trading horizon Nanhua Bio is expected to generate 8.83 times less return on investment than Piotech. But when comparing it to its historical volatility, Nanhua Bio Medicine is 1.22 times less risky than Piotech. It trades about 0.0 of its potential returns per unit of risk. Piotech Inc A is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 16,163 in Piotech Inc A on August 30, 2024 and sell it today you would earn a total of 2,850 from holding Piotech Inc A or generate 17.63% 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. Piotech Inc A
Performance |
| Timeline |
| Nanhua Bio Medicine |
| Piotech Inc A |
Nanhua Bio and Piotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanhua Bio and Piotech
The main advantage of trading using opposite Nanhua Bio and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanhua Bio position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech's long position.| Nanhua Bio vs. Yili Chuanning Biotechnology | Nanhua Bio vs. Advanced Technology Materials | Nanhua Bio vs. GRIPM Advanced Materials | Nanhua Bio vs. Guangzhou Tinci Materials |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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