Correlation Between Sinosteel Engineering and Fujian Nanwang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinosteel Engineering and and Fujian Nanwang Environment, you can compare the effects of market volatilities on Sinosteel Engineering and Fujian Nanwang 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 Sinosteel Engineering with a short position of Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Fujian Nanwang.
Diversification Opportunities for Sinosteel Engineering and Fujian Nanwang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Fujian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir and Sinosteel Engineering 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 Sinosteel Engineering and are associated (or correlated) with Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Fujian Nanwang
Assuming the 90 days trading horizon Sinosteel Engineering and is expected to generate 1.24 times more return on investment than Fujian Nanwang. However, Sinosteel Engineering is 1.24 times more volatile than Fujian Nanwang Environment. It trades about 0.2 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.12 per unit of risk. If you would invest 649.00 in Sinosteel Engineering and on September 1, 2024 and sell it today you would earn a total of 61.00 from holding Sinosteel Engineering and or generate 9.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Sinosteel Engineering and |
| Fujian Nanwang Envir |
Sinosteel Engineering and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Fujian Nanwang
The main advantage of trading using opposite Sinosteel Engineering and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Sinosteel Engineering vs. Industrial Securities Co | Sinosteel Engineering vs. Western Metal Materials | Sinosteel Engineering vs. Shandong Huifa Foodstuff | Sinosteel Engineering vs. Sichuan Yahua Industrial |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |