Correlation Between Fujian Nanwang and Guangdong Tianhe
Specify exactly 2 symbols:
By analyzing existing cross correlation between Fujian Nanwang Environment and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Fujian Nanwang and Guangdong Tianhe 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 Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Guangdong Tianhe.
Diversification Opportunities for Fujian Nanwang and Guangdong Tianhe
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fujian and Guangdong is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Guangdong Tianhe
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the Guangdong Tianhe. In addition to that, Fujian Nanwang is 1.33 times more volatile than Guangdong Tianhe Agricultural. It trades about -0.14 of its total potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.06 per unit of volatility. If you would invest 621.00 in Guangdong Tianhe Agricultural on October 28, 2024 and sell it today you would lose (22.00) from holding Guangdong Tianhe Agricultural or give up 3.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Guangdong Tianhe Agr |
Fujian Nanwang and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Guangdong Tianhe
The main advantage of trading using opposite Fujian Nanwang and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
| Guangdong Tianhe vs. Beijing Kingsoft Office | Guangdong Tianhe vs. Jiangsu Jinling Sports | Guangdong Tianhe vs. Shenzhen Urban Transport | Guangdong Tianhe vs. China World Trade |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |