Correlation Between Hunan Nanling and Aba Chemicals
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hunan Nanling Industrial and Aba Chemicals Corp, you can compare the effects of market volatilities on Hunan Nanling and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Nanling and Aba Chemicals.
Diversification Opportunities for Hunan Nanling and Aba Chemicals
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Aba is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Nanling Industrial and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Hunan Nanling i.e., Hunan Nanling and Aba Chemicals go up and down completely randomly.
Pair Corralation between Hunan Nanling and Aba Chemicals
Assuming the 90 days trading horizon Hunan Nanling Industrial is expected to generate 0.65 times more return on investment than Aba Chemicals. However, Hunan Nanling Industrial is 1.55 times less risky than Aba Chemicals. It trades about 0.01 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about 0.0 per unit of risk. If you would invest 1,043 in Hunan Nanling Industrial on October 25, 2024 and sell it today you would earn a total of 3.00 from holding Hunan Nanling Industrial or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Nanling Industrial vs. Aba Chemicals Corp
Performance |
| Timeline |
| Hunan Nanling Industrial |
| Aba Chemicals Corp |
Hunan Nanling and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Nanling and Aba Chemicals
The main advantage of trading using opposite Hunan Nanling and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Nanling position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Hunan Nanling vs. Zijin Mining Group | Hunan Nanling vs. Wanhua Chemical Group | Hunan Nanling vs. Baoshan Iron Steel | Hunan Nanling vs. Rongsheng Petrochemical Co |
| Aba Chemicals vs. Zijin Mining Group | Aba Chemicals vs. Wanhua Chemical Group | Aba Chemicals vs. Baoshan Iron Steel | Aba Chemicals vs. Rongsheng Petrochemical 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |