Correlation Between Guangdong Silvere and Nantong Haixing
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By analyzing existing cross correlation between Guangdong Silvere Sci and Nantong Haixing Electronics, you can compare the effects of market volatilities on Guangdong Silvere and Nantong Haixing 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 Guangdong Silvere with a short position of Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Nantong Haixing.
Diversification Opportunities for Guangdong Silvere and Nantong Haixing
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Nantong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec and Guangdong Silvere 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 Guangdong Silvere Sci are associated (or correlated) with Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and Nantong Haixing go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Nantong Haixing
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 1.65 times more return on investment than Nantong Haixing. However, Guangdong Silvere is 1.65 times more volatile than Nantong Haixing Electronics. It trades about 0.2 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about 0.15 per unit of risk. If you would invest 584.00 in Guangdong Silvere Sci on November 1, 2024 and sell it today you would earn a total of 64.00 from holding Guangdong Silvere Sci or generate 10.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Nantong Haixing Elec |
Guangdong Silvere and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Nantong Haixing
The main advantage of trading using opposite Guangdong Silvere and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, Nantong Haixing 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 Haixing will offset losses from the drop in Nantong Haixing's long position.| Guangdong Silvere vs. Chengdu B ray Media | Guangdong Silvere vs. Advanced Technology Materials | Guangdong Silvere vs. Hengdian Entertainment Co | Guangdong Silvere vs. China Publishing Media |
| Nantong Haixing vs. Chengtun Mining Group | Nantong Haixing vs. Zhengzhou Coal Mining | Nantong Haixing vs. Uroica Mining Safety | Nantong Haixing vs. Guangdong Silvere Sci |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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