Correlation Between Zhejiang Kingland and Nantong Haixing
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Nantong Haixing Electronics, you can compare the effects of market volatilities on Zhejiang Kingland 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 Zhejiang Kingland with a short position of Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Nantong Haixing.
Diversification Opportunities for Zhejiang Kingland and Nantong Haixing
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Nantong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline 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 Zhejiang Kingland 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 Zhejiang Kingland Pipeline 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 Zhejiang Kingland i.e., Zhejiang Kingland and Nantong Haixing go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Nantong Haixing
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to generate 0.99 times more return on investment than Nantong Haixing. However, Zhejiang Kingland Pipeline is 1.01 times less risky than Nantong Haixing. It trades about -0.16 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.18 per unit of risk. If you would invest 653.00 in Zhejiang Kingland Pipeline on August 27, 2024 and sell it today you would lose (36.00) from holding Zhejiang Kingland Pipeline or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Zhejiang Kingland |
| Nantong Haixing Elec |
Zhejiang Kingland and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Nantong Haixing
The main advantage of trading using opposite Zhejiang Kingland and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland 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.| Zhejiang Kingland vs. COL Digital Publishing | Zhejiang Kingland vs. Tianjin Tianyao Pharmaceuticals | Zhejiang Kingland vs. Guocheng Mining Co | Zhejiang Kingland vs. Yonghui Superstores Co |
| Nantong Haixing vs. Kweichow Moutai Co | Nantong Haixing vs. Shenzhen Mindray Bio Medical | Nantong Haixing vs. Jiangsu Pacific Quartz | Nantong Haixing vs. G bits Network 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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