Correlation Between Shaanxi Meineng and Nantong Haixing
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Nantong Haixing Electronics, you can compare the effects of market volatilities on Shaanxi Meineng 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 Shaanxi Meineng with a short position of Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Nantong Haixing.
Diversification Opportunities for Shaanxi Meineng and Nantong Haixing
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shaanxi and Nantong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean 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 Shaanxi Meineng 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 Shaanxi Meineng Clean 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 Shaanxi Meineng i.e., Shaanxi Meineng and Nantong Haixing go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Nantong Haixing
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to generate 1.36 times more return on investment than Nantong Haixing. However, Shaanxi Meineng is 1.36 times more volatile than Nantong Haixing Electronics. It trades about 0.17 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about 0.13 per unit of risk. If you would invest 1,262 in Shaanxi Meineng Clean on September 2, 2024 and sell it today you would earn a total of 120.00 from holding Shaanxi Meineng Clean or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Nantong Haixing Elec |
Shaanxi Meineng and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Nantong Haixing
The main advantage of trading using opposite Shaanxi Meineng and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng 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.| Shaanxi Meineng vs. Tibet Huayu Mining | Shaanxi Meineng vs. Shenzhen Topway Video | Shaanxi Meineng vs. Leyard Optoelectronic | Shaanxi Meineng vs. Nantong Haixing Electronics |
| Nantong Haixing vs. Cultural Investment Holdings | Nantong Haixing vs. Gome Telecom Equipment | Nantong Haixing vs. Bus Online Co | Nantong Haixing vs. Holitech Technology 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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