Correlation Between Nantex Industry and Shuang Bang
Can any of the company-specific risk be diversified away by investing in both Nantex Industry and Shuang Bang at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nantex Industry and Shuang Bang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nantex Industry Co and Shuang Bang Industrial, you can compare the effects of market volatilities on Nantex Industry and Shuang Bang 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 Nantex Industry with a short position of Shuang Bang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantex Industry and Shuang Bang.
Diversification Opportunities for Nantex Industry and Shuang Bang
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nantex and Shuang is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nantex Industry Co and Shuang Bang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuang Bang Industrial and Nantex Industry 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 Nantex Industry Co are associated (or correlated) with Shuang Bang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuang Bang Industrial has no effect on the direction of Nantex Industry i.e., Nantex Industry and Shuang Bang go up and down completely randomly.
Pair Corralation between Nantex Industry and Shuang Bang
Assuming the 90 days trading horizon Nantex Industry Co is expected to under-perform the Shuang Bang. In addition to that, Nantex Industry is 1.07 times more volatile than Shuang Bang Industrial. It trades about -0.01 of its total potential returns per unit of risk. Shuang Bang Industrial is currently generating about 0.0 per unit of volatility. If you would invest 1,835 in Shuang Bang Industrial on September 2, 2024 and sell it today you would lose (70.00) from holding Shuang Bang Industrial or give up 3.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantex Industry Co vs. Shuang Bang Industrial
Performance |
| Timeline |
| Nantex Industry |
| Shuang Bang Industrial |
Nantex Industry and Shuang Bang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantex Industry and Shuang Bang
The main advantage of trading using opposite Nantex Industry and Shuang Bang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantex Industry position performs unexpectedly, Shuang Bang 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 Shuang Bang will offset losses from the drop in Shuang Bang's long position.| Nantex Industry vs. International CSRC Investment | Nantex Industry vs. TSRC Corp | Nantex Industry vs. Ruentex Industries | Nantex Industry vs. Cheng Shin Rubber |
| Shuang Bang vs. Delta Electronics | Shuang Bang vs. China Steel Chemical | Shuang Bang vs. Hota Industrial Mfg |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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