Correlation Between Fujian Nanwang and Tongxing Environmental
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By analyzing existing cross correlation between Fujian Nanwang Environment and Tongxing Environmental Protection, you can compare the effects of market volatilities on Fujian Nanwang and Tongxing Environmental 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 Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Tongxing Environmental.
Diversification Opportunities for Fujian Nanwang and Tongxing Environmental
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fujian and Tongxing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental 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 Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Tongxing Environmental
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to generate 0.86 times more return on investment than Tongxing Environmental. However, Fujian Nanwang Environment is 1.16 times less risky than Tongxing Environmental. It trades about -0.03 of its potential returns per unit of risk. Tongxing Environmental Protection is currently generating about -0.04 per unit of risk. If you would invest 2,114 in Fujian Nanwang Environment on October 13, 2024 and sell it today you would lose (715.00) from holding Fujian Nanwang Environment or give up 33.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.96% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Tongxing Environmental Protect
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Tongxing Environmental |
Fujian Nanwang and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Tongxing Environmental
The main advantage of trading using opposite Fujian Nanwang and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.| Fujian Nanwang vs. Hefei Metalforming Mach | Fujian Nanwang vs. Tianshan Aluminum Group | Fujian Nanwang vs. Anhui Jianghuai Automobile | Fujian Nanwang vs. Yindu Kitchen Equipment |
| Tongxing Environmental vs. Uroica Mining Safety | Tongxing Environmental vs. Huayi Brothers Media | Tongxing Environmental vs. JCHX Mining Management | Tongxing Environmental vs. Thinkingdom Media Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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