Correlation Between Guangdong Xiongsu and Fujian Nanwang
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and Fujian Nanwang Environment, you can compare the effects of market volatilities on Guangdong Xiongsu and Fujian Nanwang 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 Xiongsu with a short position of Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Fujian Nanwang.
Diversification Opportunities for Guangdong Xiongsu and Fujian Nanwang
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Fujian is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir and Guangdong Xiongsu 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 Xiongsu Technology are associated (or correlated) with Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Guangdong Xiongsu i.e., Guangdong Xiongsu and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Fujian Nanwang
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to generate 1.63 times more return on investment than Fujian Nanwang. However, Guangdong Xiongsu is 1.63 times more volatile than Fujian Nanwang Environment. It trades about 0.02 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.0 per unit of risk. If you would invest 673.00 in Guangdong Xiongsu Technology on October 18, 2024 and sell it today you would lose (17.00) from holding Guangdong Xiongsu Technology or give up 2.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Guangdong Xiongsu |
| Fujian Nanwang Envir |
Guangdong Xiongsu and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Fujian Nanwang
The main advantage of trading using opposite Guangdong Xiongsu and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Guangdong Xiongsu vs. Kangping Technology Co | Guangdong Xiongsu vs. Hygon Information Technology | Guangdong Xiongsu vs. Shenzhen SDG Information | Guangdong Xiongsu vs. ButOne Information Corp |
| Fujian Nanwang vs. Kuangda Technology Group | Fujian Nanwang vs. Tianjin Ruixin Technology | Fujian Nanwang vs. Guangdong Xiongsu Technology | Fujian Nanwang vs. Keeson Technology Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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