Correlation Between Nanhua Bio and Qingdao Yunlu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanhua Bio Medicine and Qingdao Yunlu Advanced, you can compare the effects of market volatilities on Nanhua Bio and Qingdao Yunlu 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 Qingdao Yunlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanhua Bio and Qingdao Yunlu.
Diversification Opportunities for Nanhua Bio and Qingdao Yunlu
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nanhua and Qingdao is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Nanhua Bio Medicine and Qingdao Yunlu Advanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Yunlu Advanced 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 Qingdao Yunlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Yunlu Advanced has no effect on the direction of Nanhua Bio i.e., Nanhua Bio and Qingdao Yunlu go up and down completely randomly.
Pair Corralation between Nanhua Bio and Qingdao Yunlu
Assuming the 90 days trading horizon Nanhua Bio Medicine is expected to under-perform the Qingdao Yunlu. In addition to that, Nanhua Bio is 2.03 times more volatile than Qingdao Yunlu Advanced. It trades about -0.06 of its total potential returns per unit of risk. Qingdao Yunlu Advanced is currently generating about 0.1 per unit of volatility. If you would invest 8,711 in Qingdao Yunlu Advanced on October 20, 2024 and sell it today you would earn a total of 339.00 from holding Qingdao Yunlu Advanced or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanhua Bio Medicine vs. Qingdao Yunlu Advanced
Performance |
| Timeline |
| Nanhua Bio Medicine |
| Qingdao Yunlu Advanced |
Nanhua Bio and Qingdao Yunlu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanhua Bio and Qingdao Yunlu
The main advantage of trading using opposite Nanhua Bio and Qingdao Yunlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanhua Bio position performs unexpectedly, Qingdao Yunlu 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 Qingdao Yunlu will offset losses from the drop in Qingdao Yunlu's long position.| Nanhua Bio vs. State Grid InformationCommunication | Nanhua Bio vs. Guangzhou Haige Communications | Nanhua Bio vs. Sinomach Automobile Co | Nanhua Bio vs. Guangxi Wuzhou Communications |
| Qingdao Yunlu vs. China Life Insurance | Qingdao Yunlu vs. Cinda Securities Co | Qingdao Yunlu vs. Piotech Inc A | Qingdao Yunlu vs. Dongxing Sec Co |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |