Correlation Between Shantou Wanshun and Nanhua Bio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shantou Wanshun Package and Nanhua Bio Medicine, you can compare the effects of market volatilities on Shantou Wanshun and Nanhua Bio 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 Shantou Wanshun with a short position of Nanhua Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Nanhua Bio.
Diversification Opportunities for Shantou Wanshun and Nanhua Bio
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shantou and Nanhua is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Nanhua Bio Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanhua Bio Medicine and Shantou Wanshun 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 Shantou Wanshun Package are associated (or correlated) with Nanhua Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanhua Bio Medicine has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and Nanhua Bio go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Nanhua Bio
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 3.17 times more return on investment than Nanhua Bio. However, Shantou Wanshun is 3.17 times more volatile than Nanhua Bio Medicine. It trades about 0.17 of its potential returns per unit of risk. Nanhua Bio Medicine is currently generating about 0.22 per unit of risk. If you would invest 456.00 in Shantou Wanshun Package on December 4, 2024 and sell it today you would earn a total of 84.00 from holding Shantou Wanshun Package or generate 18.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Nanhua Bio Medicine
Performance |
| Timeline |
| Shantou Wanshun Package |
| Nanhua Bio Medicine |
Shantou Wanshun and Nanhua Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Nanhua Bio
The main advantage of trading using opposite Shantou Wanshun and Nanhua Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, Nanhua Bio 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 Nanhua Bio will offset losses from the drop in Nanhua Bio's long position.| Shantou Wanshun vs. Allied Machinery Co | Shantou Wanshun vs. Hongrun Construction Group | Shantou Wanshun vs. Gifore Agricultural Machinery | Shantou Wanshun vs. Qijing Machinery |
| Nanhua Bio vs. Guangzhou Automobile Group | Nanhua Bio vs. China Eastern Airlines | Nanhua Bio vs. Ningbo Fangzheng Automobile | Nanhua Bio vs. Beijing Sanyuan Foods |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |