Correlation Between Hunan Investment and Namchow Food
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By analyzing existing cross correlation between Hunan Investment Group and Namchow Food Group, you can compare the effects of market volatilities on Hunan Investment and Namchow Food 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 Hunan Investment with a short position of Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Namchow Food.
Diversification Opportunities for Hunan Investment and Namchow Food
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Namchow is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group and Hunan Investment 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 Hunan Investment Group are associated (or correlated) with Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Hunan Investment i.e., Hunan Investment and Namchow Food go up and down completely randomly.
Pair Corralation between Hunan Investment and Namchow Food
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 0.55 times more return on investment than Namchow Food. However, Hunan Investment Group is 1.82 times less risky than Namchow Food. It trades about 0.08 of its potential returns per unit of risk. Namchow Food Group is currently generating about 0.03 per unit of risk. If you would invest 513.00 in Hunan Investment Group on November 3, 2024 and sell it today you would earn a total of 12.00 from holding Hunan Investment Group or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Namchow Food Group
Performance |
| Timeline |
| Hunan Investment |
| Namchow Food Group |
Hunan Investment and Namchow Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Namchow Food
The main advantage of trading using opposite Hunan Investment and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.| Hunan Investment vs. Allmed Medical Products | Hunan Investment vs. Easyhome New Retail | Hunan Investment vs. AUPU Home Style | Hunan Investment vs. Ziel Home Furnishing |
| Namchow Food vs. Newcapec Electronics Co | Namchow Food vs. Kontour Medical Technology | Namchow Food vs. Chison Medical Technologies | Namchow Food vs. BrightGene Bio 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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