Correlation Between Hunan Nanling and 159681
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By analyzing existing cross correlation between Hunan Nanling Industrial and 159681, you can compare the effects of market volatilities on Hunan Nanling and 159681 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 159681. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Nanling and 159681.
Diversification Opportunities for Hunan Nanling and 159681
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and 159681 is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Nanling Industrial and 159681 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159681 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 159681. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159681 has no effect on the direction of Hunan Nanling i.e., Hunan Nanling and 159681 go up and down completely randomly.
Pair Corralation between Hunan Nanling and 159681
Assuming the 90 days trading horizon Hunan Nanling Industrial is expected to under-perform the 159681. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Nanling Industrial is 1.11 times less risky than 159681. The stock trades about -0.2 of its potential returns per unit of risk. The 159681 is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 98.00 in 159681 on August 29, 2024 and sell it today you would lose (3.00) from holding 159681 or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Nanling Industrial vs. 159681
Performance |
| Timeline |
| Hunan Nanling Industrial |
| 159681 |
Hunan Nanling and 159681 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Nanling and 159681
The main advantage of trading using opposite Hunan Nanling and 159681 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Nanling position performs unexpectedly, 159681 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 159681 will offset losses from the drop in 159681's long position.| Hunan Nanling vs. CGN Nuclear Technology | Hunan Nanling vs. Jiangsu Phoenix Publishing | Hunan Nanling vs. Keli Sensing Technology | Hunan Nanling vs. Guangzhou KingTeller Technology |
| 159681 vs. Shenzhen MTC Co | 159681 vs. Ming Yang Smart | 159681 vs. Changzhou Almaden Co | 159681 vs. 159005 |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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