Correlation Between Chongqing Sulian and Nanjing Vishee
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By analyzing existing cross correlation between Chongqing Sulian Plastic and Nanjing Vishee Medical, you can compare the effects of market volatilities on Chongqing Sulian and Nanjing Vishee 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 Chongqing Sulian with a short position of Nanjing Vishee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and Nanjing Vishee.
Diversification Opportunities for Chongqing Sulian and Nanjing Vishee
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Nanjing is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and Nanjing Vishee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Vishee Medical and Chongqing Sulian 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 Chongqing Sulian Plastic are associated (or correlated) with Nanjing Vishee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Vishee Medical has no effect on the direction of Chongqing Sulian i.e., Chongqing Sulian and Nanjing Vishee go up and down completely randomly.
Pair Corralation between Chongqing Sulian and Nanjing Vishee
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to generate 0.95 times more return on investment than Nanjing Vishee. However, Chongqing Sulian Plastic is 1.05 times less risky than Nanjing Vishee. It trades about -0.01 of its potential returns per unit of risk. Nanjing Vishee Medical is currently generating about -0.02 per unit of risk. If you would invest 3,609 in Chongqing Sulian Plastic on October 18, 2024 and sell it today you would lose (1,082) from holding Chongqing Sulian Plastic or give up 29.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 79.0% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. Nanjing Vishee Medical
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| Nanjing Vishee Medical |
Chongqing Sulian and Nanjing Vishee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and Nanjing Vishee
The main advantage of trading using opposite Chongqing Sulian and Nanjing Vishee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian position performs unexpectedly, Nanjing Vishee 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 Nanjing Vishee will offset losses from the drop in Nanjing Vishee's long position.| Chongqing Sulian vs. Holitech Technology Co | Chongqing Sulian vs. Dhc Software Co | Chongqing Sulian vs. Jinhe Biotechnology Co | Chongqing Sulian vs. Vohringer Home Technology |
| Nanjing Vishee vs. Konfoong Materials International | Nanjing Vishee vs. Jiangnan Mould Plastic | Nanjing Vishee vs. Chongqing Sulian Plastic | Nanjing Vishee vs. Beijing Baolande Software |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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