Correlation Between China Express and Nantong Haixing
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By analyzing existing cross correlation between China Express Airlines and Nantong Haixing Electronics, you can compare the effects of market volatilities on China Express 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 China Express with a short position of Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Express and Nantong Haixing.
Diversification Opportunities for China Express and Nantong Haixing
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Nantong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Express Airlines 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 China Express 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 China Express Airlines 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 China Express i.e., China Express and Nantong Haixing go up and down completely randomly.
Pair Corralation between China Express and Nantong Haixing
Assuming the 90 days trading horizon China Express Airlines is expected to under-perform the Nantong Haixing. In addition to that, China Express is 1.19 times more volatile than Nantong Haixing Electronics. It trades about -0.02 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.01 per unit of volatility. If you would invest 1,625 in Nantong Haixing Electronics on August 30, 2024 and sell it today you would lose (265.00) from holding Nantong Haixing Electronics or give up 16.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Express Airlines vs. Nantong Haixing Electronics
Performance |
| Timeline |
| China Express Airlines |
| Nantong Haixing Elec |
China Express and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Express and Nantong Haixing
The main advantage of trading using opposite China Express and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Express 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.| China Express vs. Chengdu Kanghua Biological | China Express vs. Beijing Wantai Biological | China Express vs. Suzhou Novoprotein Scientific | China Express vs. Aluminum Corp of |
| Nantong Haixing vs. Hengerda New Materials | Nantong Haixing vs. Super Dragon Engineering Plastics | Nantong Haixing vs. Songz Automobile Air | Nantong Haixing vs. Malion New Materials |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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