Correlation Between Hunan Nanling and Shandong Mining
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By analyzing existing cross correlation between Hunan Nanling Industrial and Shandong Mining Machinery, you can compare the effects of market volatilities on Hunan Nanling and Shandong Mining 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 Nanling with a short position of Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Nanling and Shandong Mining.
Diversification Opportunities for Hunan Nanling and Shandong Mining
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Shandong is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Nanling Industrial and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery and Hunan Nanling 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 Nanling Industrial are associated (or correlated) with Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Hunan Nanling i.e., Hunan Nanling and Shandong Mining go up and down completely randomly.
Pair Corralation between Hunan Nanling and Shandong Mining
Assuming the 90 days trading horizon Hunan Nanling Industrial is expected to generate 0.89 times more return on investment than Shandong Mining. However, Hunan Nanling Industrial is 1.13 times less risky than Shandong Mining. It trades about 0.05 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.03 per unit of risk. If you would invest 1,044 in Hunan Nanling Industrial on August 27, 2024 and sell it today you would earn a total of 179.00 from holding Hunan Nanling Industrial or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Nanling Industrial vs. Shandong Mining Machinery
Performance |
| Timeline |
| Hunan Nanling Industrial |
| Shandong Mining Machinery |
Hunan Nanling and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Nanling and Shandong Mining
The main advantage of trading using opposite Hunan Nanling and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Nanling position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining's long position.| Hunan Nanling vs. Iat Automobile Technology | Hunan Nanling vs. Shandong Sinoglory Health | Hunan Nanling vs. Guangzhou Haige Communications | Hunan Nanling vs. Sinomach Automobile Co |
| Shandong Mining vs. Kweichow Moutai Co | Shandong Mining vs. Contemporary Amperex Technology | Shandong Mining vs. G bits Network Technology | Shandong Mining vs. Beijing Roborock Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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