Correlation Between Shantou Wanshun and Nantong Jiangshan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shantou Wanshun Package and Nantong Jiangshan Agrochemical, you can compare the effects of market volatilities on Shantou Wanshun and Nantong Jiangshan 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 Nantong Jiangshan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Nantong Jiangshan.
Diversification Opportunities for Shantou Wanshun and Nantong Jiangshan
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shantou and Nantong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package and Nantong Jiangshan Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Jiangshan 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 Nantong Jiangshan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Jiangshan has no effect on the direction of Shantou Wanshun i.e., Shantou Wanshun and Nantong Jiangshan go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Nantong Jiangshan
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 1.3 times more return on investment than Nantong Jiangshan. However, Shantou Wanshun is 1.3 times more volatile than Nantong Jiangshan Agrochemical. It trades about -0.02 of its potential returns per unit of risk. Nantong Jiangshan Agrochemical is currently generating about -0.05 per unit of risk. If you would invest 956.00 in Shantou Wanshun Package on September 4, 2024 and sell it today you would lose (382.00) from holding Shantou Wanshun Package or give up 39.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Nantong Jiangshan Agrochemical
Performance |
| Timeline |
| Shantou Wanshun Package |
| Nantong Jiangshan |
Shantou Wanshun and Nantong Jiangshan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Nantong Jiangshan
The main advantage of trading using opposite Shantou Wanshun and Nantong Jiangshan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun position performs unexpectedly, Nantong Jiangshan 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 Jiangshan will offset losses from the drop in Nantong Jiangshan's long position.| Shantou Wanshun vs. Zijin Mining Group | Shantou Wanshun vs. Wanhua Chemical Group | Shantou Wanshun vs. Baoshan Iron Steel | Shantou Wanshun vs. Rongsheng Petrochemical Co |
| Nantong Jiangshan vs. Zijin Mining Group | Nantong Jiangshan vs. Wanhua Chemical Group | Nantong Jiangshan vs. Baoshan Iron Steel | Nantong Jiangshan vs. Rongsheng Petrochemical Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |