Correlation Between Hengerda New and Nantong Haixing
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By analyzing existing cross correlation between Hengerda New Materials and Nantong Haixing Electronics, you can compare the effects of market volatilities on Hengerda New 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 Hengerda New with a short position of Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengerda New and Nantong Haixing.
Diversification Opportunities for Hengerda New and Nantong Haixing
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengerda and Nantong is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hengerda New Materials 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 Hengerda New 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 Hengerda New Materials 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 Hengerda New i.e., Hengerda New and Nantong Haixing go up and down completely randomly.
Pair Corralation between Hengerda New and Nantong Haixing
Assuming the 90 days trading horizon Hengerda New Materials is expected to generate 2.05 times more return on investment than Nantong Haixing. However, Hengerda New is 2.05 times more volatile than Nantong Haixing Electronics. It trades about 0.29 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about 0.2 per unit of risk. If you would invest 2,732 in Hengerda New Materials on November 28, 2024 and sell it today you would earn a total of 796.00 from holding Hengerda New Materials or generate 29.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengerda New Materials vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Hengerda New Materials |
| Nantong Haixing Elec |
Hengerda New and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengerda New and Nantong Haixing
The main advantage of trading using opposite Hengerda New and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengerda New 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.| Hengerda New vs. CIMC Vehicles Co | Hengerda New vs. Kuang Chi Technologies | Hengerda New vs. Changzhou Evergreen Technology | Hengerda New vs. Gosuncn Technology Group |
| Nantong Haixing vs. Guangzhou Seagull Kitchen | Nantong Haixing vs. Zhongyin Babi Food | Nantong Haixing vs. Ligao Foods CoLtd | Nantong Haixing vs. Elite Color Environmental |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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