Correlation Between Fujian Nanwang and Hang Xiao
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By analyzing existing cross correlation between Fujian Nanwang Environment and Hang Xiao Steel, you can compare the effects of market volatilities on Fujian Nanwang and Hang Xiao 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 Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Hang Xiao.
Diversification Opportunities for Fujian Nanwang and Hang Xiao
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Hang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel 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 Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Hang Xiao go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Hang Xiao
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to generate 0.85 times more return on investment than Hang Xiao. However, Fujian Nanwang Environment is 1.18 times less risky than Hang Xiao. It trades about 0.12 of its potential returns per unit of risk. Hang Xiao Steel is currently generating about -0.07 per unit of risk. If you would invest 1,192 in Fujian Nanwang Environment on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Fujian Nanwang Environment or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Hang Xiao Steel
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Hang Xiao Steel |
Fujian Nanwang and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Hang Xiao
The main advantage of trading using opposite Fujian Nanwang and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao'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 |
| Hang Xiao vs. Western Metal Materials | Hang Xiao vs. Heilongjiang Transport Development | Hang Xiao vs. Dezhan HealthCare Co | Hang Xiao vs. Shanghai Rongtai Health |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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