Correlation Between Hunan Nanling and Jiangsu Seagull
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By analyzing existing cross correlation between Hunan Nanling Industrial and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Hunan Nanling and Jiangsu Seagull 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 Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Nanling and Jiangsu Seagull.
Diversification Opportunities for Hunan Nanling and Jiangsu Seagull
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Nanling Industrial and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling 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 Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Hunan Nanling i.e., Hunan Nanling and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Hunan Nanling and Jiangsu Seagull
Assuming the 90 days trading horizon Hunan Nanling is expected to generate 2.78 times less return on investment than Jiangsu Seagull. But when comparing it to its historical volatility, Hunan Nanling Industrial is 1.46 times less risky than Jiangsu Seagull. It trades about 0.01 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 933.00 in Jiangsu Seagull Cooling on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Jiangsu Seagull Cooling or generate 0.75% 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. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Hunan Nanling Industrial |
| Jiangsu Seagull Cooling |
Hunan Nanling and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Nanling and Jiangsu Seagull
The main advantage of trading using opposite Hunan Nanling and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Nanling position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Hunan Nanling vs. Bomin Electronics Co | Hunan Nanling vs. Aurora Optoelectronics Co | Hunan Nanling vs. TongFu Microelectronics Co | Hunan Nanling vs. Wuhan Yangtze Communication |
| Jiangsu Seagull vs. Chengtun Mining Group | Jiangsu Seagull vs. Allmed Medical Products | Jiangsu Seagull vs. Uroica Mining Safety | Jiangsu Seagull vs. Zhejiang Yayi Metal |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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