Correlation Between 159681 and Hunan Nanling
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By analyzing existing cross correlation between 159681 and Hunan Nanling Industrial, you can compare the effects of market volatilities on 159681 and Hunan Nanling 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 159681 with a short position of Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Hunan Nanling.
Diversification Opportunities for 159681 and Hunan Nanling
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Hunan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial and 159681 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 159681 are associated (or correlated) with Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of 159681 i.e., 159681 and Hunan Nanling go up and down completely randomly.
Pair Corralation between 159681 and Hunan Nanling
Assuming the 90 days trading horizon 159681 is expected to generate 1.11 times more return on investment than Hunan Nanling. However, 159681 is 1.11 times more volatile than Hunan Nanling Industrial. It trades about -0.04 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about -0.2 per unit of risk. If you would invest 98.00 in 159681 on August 29, 2024 and sell it today you would lose (3.00) from holding 159681 or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Hunan Nanling Industrial
Performance |
| Timeline |
| 159681 |
| Hunan Nanling Industrial |
159681 and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Hunan Nanling
The main advantage of trading using opposite 159681 and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Hunan Nanling 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 Hunan Nanling will offset losses from the drop in Hunan Nanling's long position.| 159681 vs. Shenzhen MTC Co | 159681 vs. Ming Yang Smart | 159681 vs. Changzhou Almaden Co | 159681 vs. 159005 |
| Hunan Nanling vs. CGN Nuclear Technology | Hunan Nanling vs. Jiangsu Phoenix Publishing | Hunan Nanling vs. Keli Sensing Technology | Hunan Nanling vs. Guangzhou KingTeller 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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