Correlation Between Fujian Nanwang and Weihai Honglin
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By analyzing existing cross correlation between Fujian Nanwang Environment and Weihai Honglin Electronic, you can compare the effects of market volatilities on Fujian Nanwang and Weihai Honglin 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 Weihai Honglin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Weihai Honglin.
Diversification Opportunities for Fujian Nanwang and Weihai Honglin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Weihai is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Weihai Honglin Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Honglin Electronic 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 Weihai Honglin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Honglin Electronic has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Weihai Honglin go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Weihai Honglin
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the Weihai Honglin. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Nanwang Environment is 1.09 times less risky than Weihai Honglin. The stock trades about -0.04 of its potential returns per unit of risk. The Weihai Honglin Electronic is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,342 in Weihai Honglin Electronic on September 2, 2024 and sell it today you would lose (973.00) from holding Weihai Honglin Electronic or give up 41.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 86.27% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Weihai Honglin Electronic
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Weihai Honglin Electronic |
Fujian Nanwang and Weihai Honglin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Weihai Honglin
The main advantage of trading using opposite Fujian Nanwang and Weihai Honglin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Weihai Honglin 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 Weihai Honglin will offset losses from the drop in Weihai Honglin'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 |
| Weihai Honglin vs. Cultural Investment Holdings | Weihai Honglin vs. Gome Telecom Equipment | Weihai Honglin vs. Bus Online Co | Weihai Honglin vs. Holitech Technology 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 CEOs Directory module to screen CEOs from public companies around the world.
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