Correlation Between Sichuan Jinshi and Nancal Energy
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Nancal Energy Saving Tech, you can compare the effects of market volatilities on Sichuan Jinshi and Nancal Energy 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 Sichuan Jinshi with a short position of Nancal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Nancal Energy.
Diversification Opportunities for Sichuan Jinshi and Nancal Energy
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sichuan and Nancal is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology and Nancal Energy Saving Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nancal Energy Saving and Sichuan Jinshi 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 Sichuan Jinshi Technology are associated (or correlated) with Nancal Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nancal Energy Saving has no effect on the direction of Sichuan Jinshi i.e., Sichuan Jinshi and Nancal Energy go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Nancal Energy
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to under-perform the Nancal Energy. But the stock apears to be less risky and, when comparing its historical volatility, Sichuan Jinshi Technology is 2.53 times less risky than Nancal Energy. The stock trades about -0.05 of its potential returns per unit of risk. The Nancal Energy Saving Tech is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,490 in Nancal Energy Saving Tech on September 5, 2024 and sell it today you would earn a total of 639.00 from holding Nancal Energy Saving Tech or generate 25.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Nancal Energy Saving Tech
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Nancal Energy Saving |
Sichuan Jinshi and Nancal Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Nancal Energy
The main advantage of trading using opposite Sichuan Jinshi and Nancal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi position performs unexpectedly, Nancal Energy 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 Nancal Energy will offset losses from the drop in Nancal Energy's long position.| Sichuan Jinshi vs. Nancal Energy Saving Tech | Sichuan Jinshi vs. Agricultural Bank of | Sichuan Jinshi vs. Shenwu Energy Saving | Sichuan Jinshi vs. HeNan Splendor Science |
| Nancal Energy vs. Huitong Construction Group | Nancal Energy vs. Long Yuan Construction | Nancal Energy vs. Jinhe Biotechnology Co | Nancal Energy vs. Bloomage Biotechnology Corp |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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