Correlation Between Weihai Honglin and Fujian Nanwang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weihai Honglin Electronic and Fujian Nanwang Environment, you can compare the effects of market volatilities on Weihai Honglin and Fujian Nanwang 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 Weihai Honglin with a short position of Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Fujian Nanwang.
Diversification Opportunities for Weihai Honglin and Fujian Nanwang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Weihai and Fujian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir and Weihai Honglin 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 Weihai Honglin Electronic are associated (or correlated) with Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Weihai Honglin i.e., Weihai Honglin and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Weihai Honglin and Fujian Nanwang
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to generate 1.16 times more return on investment than Fujian Nanwang. However, Weihai Honglin is 1.16 times more volatile than Fujian Nanwang Environment. It trades about 0.01 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about -0.02 per unit of risk. If you would invest 1,433 in Weihai Honglin Electronic on September 3, 2024 and sell it today you would lose (46.00) from holding Weihai Honglin Electronic or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Fujian Nanwang Envir |
Weihai Honglin and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Fujian Nanwang
The main advantage of trading using opposite Weihai Honglin and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |