Correlation Between Guizhou Chanhen and Nanning Chemical
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Nanning Chemical Industry, you can compare the effects of market volatilities on Guizhou Chanhen and Nanning Chemical 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 Guizhou Chanhen with a short position of Nanning Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Nanning Chemical.
Diversification Opportunities for Guizhou Chanhen and Nanning Chemical
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guizhou and Nanning is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Nanning Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanning Chemical Industry and Guizhou Chanhen 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 Guizhou Chanhen Chemical are associated (or correlated) with Nanning Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanning Chemical Industry has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Nanning Chemical go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Nanning Chemical
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to under-perform the Nanning Chemical. But the stock apears to be less risky and, when comparing its historical volatility, Guizhou Chanhen Chemical is 1.07 times less risky than Nanning Chemical. The stock trades about -0.02 of its potential returns per unit of risk. The Nanning Chemical Industry is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,787 in Nanning Chemical Industry on October 26, 2024 and sell it today you would lose (30.00) from holding Nanning Chemical Industry or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Nanning Chemical Industry
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Nanning Chemical Industry |
Guizhou Chanhen and Nanning Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Nanning Chemical
The main advantage of trading using opposite Guizhou Chanhen and Nanning Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Nanning Chemical 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 Nanning Chemical will offset losses from the drop in Nanning Chemical's long position.| Guizhou Chanhen vs. Zijin Mining Group | Guizhou Chanhen vs. Wanhua Chemical Group | Guizhou Chanhen vs. Baoshan Iron Steel | Guizhou Chanhen vs. Shandong Gold Mining |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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