Correlation Between Lander Sports and Nantong Haixing
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By analyzing existing cross correlation between Lander Sports Development and Nantong Haixing Electronics, you can compare the effects of market volatilities on Lander Sports and Nantong Haixing 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 Lander Sports with a short position of Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lander Sports and Nantong Haixing.
Diversification Opportunities for Lander Sports and Nantong Haixing
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lander and Nantong is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lander Sports Development and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec and Lander Sports 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 Lander Sports Development are associated (or correlated) with Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Lander Sports i.e., Lander Sports and Nantong Haixing go up and down completely randomly.
Pair Corralation between Lander Sports and Nantong Haixing
Assuming the 90 days trading horizon Lander Sports Development is expected to generate 3.29 times more return on investment than Nantong Haixing. However, Lander Sports is 3.29 times more volatile than Nantong Haixing Electronics. It trades about 0.05 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.05 per unit of risk. If you would invest 305.00 in Lander Sports Development on October 30, 2024 and sell it today you would earn a total of 17.00 from holding Lander Sports Development or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lander Sports Development vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Lander Sports Development |
| Nantong Haixing Elec |
Lander Sports and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lander Sports and Nantong Haixing
The main advantage of trading using opposite Lander Sports and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lander Sports position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Lander Sports vs. Songz Automobile Air | Lander Sports vs. Jilin Jlu Communication | Lander Sports vs. Beijing Kaiwen Education | Lander Sports vs. Spring Airlines Co |
| Nantong Haixing vs. Shandong Rike Chemical | Nantong Haixing vs. Zhongshan Broad Ocean Motor | Nantong Haixing vs. Liuzhou Chemical Industry | Nantong Haixing vs. Jiangsu Financial Leasing |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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