Correlation Between Fujian Nanwang and GreenTech Environmental
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By analyzing existing cross correlation between Fujian Nanwang Environment and GreenTech Environmental Co, you can compare the effects of market volatilities on Fujian Nanwang and GreenTech 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and GreenTech Environmental.
Diversification Opportunities for Fujian Nanwang and GreenTech Environmental
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and GreenTech is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Fujian Nanwang and GreenTech Environmental
Assuming the 90 days trading horizon Fujian Nanwang is expected to generate 2.62 times less return on investment than GreenTech Environmental. But when comparing it to its historical volatility, Fujian Nanwang Environment is 2.85 times less risky than GreenTech Environmental. It trades about 0.17 of its potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,357 in GreenTech Environmental Co on August 31, 2024 and sell it today you would earn a total of 218.00 from holding GreenTech Environmental Co or generate 16.06% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Fujian Nanwang Envir |
| GreenTech Environmental |
Fujian Nanwang and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and GreenTech Environmental
The main advantage of trading using opposite Fujian Nanwang and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, GreenTech 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Rongsheng Petrochemical Co | Fujian Nanwang vs. Hoshine Silicon Ind |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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