Correlation Between Fujian Nanwang and North Copper
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Nanwang Environment and North Copper Shanxi, you can compare the effects of market volatilities on Fujian Nanwang and North Copper 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 Fujian Nanwang with a short position of North Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and North Copper.
Diversification Opportunities for Fujian Nanwang and North Copper
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fujian and North is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and North Copper Shanxi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on North Copper Shanxi and Fujian Nanwang 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 Fujian Nanwang Environment are associated (or correlated) with North Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of North Copper Shanxi has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and North Copper go up and down completely randomly.
Pair Corralation between Fujian Nanwang and North Copper
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the North Copper. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Nanwang Environment is 1.19 times less risky than North Copper. The stock trades about -0.04 of its potential returns per unit of risk. The North Copper Shanxi is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 614.00 in North Copper Shanxi on October 21, 2024 and sell it today you would earn a total of 338.00 from holding North Copper Shanxi or generate 55.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 81.16% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. North Copper Shanxi
Performance |
| Timeline |
| Fujian Nanwang Envir |
| North Copper Shanxi |
Fujian Nanwang and North Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and North Copper
The main advantage of trading using opposite Fujian Nanwang and North Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, North Copper 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 North Copper will offset losses from the drop in North Copper's long position.| Fujian Nanwang vs. Jilin Chemical Fibre | Fujian Nanwang vs. Hunan TV Broadcast | Fujian Nanwang vs. Road Environment Technology | Fujian Nanwang vs. Shenyang Chemical Industry |
| North Copper vs. Heilongjiang Transport Development | North Copper vs. Zhongshan Broad Ocean Motor | North Copper vs. Zhejiang Kingland Pipeline | North Copper vs. Spring Airlines 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |