Correlation Between 516220 and Hunan Nanling
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By analyzing existing cross correlation between 516220 and Hunan Nanling Industrial, you can compare the effects of market volatilities on 516220 and Hunan Nanling 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 516220 with a short position of Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of 516220 and Hunan Nanling.
Diversification Opportunities for 516220 and Hunan Nanling
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 516220 and Hunan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding 516220 and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial and 516220 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 516220 are associated (or correlated) with Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of 516220 i.e., 516220 and Hunan Nanling go up and down completely randomly.
Pair Corralation between 516220 and Hunan Nanling
Assuming the 90 days trading horizon 516220 is expected to under-perform the Hunan Nanling. But the etf apears to be less risky and, when comparing its historical volatility, 516220 is 1.57 times less risky than Hunan Nanling. The etf trades about -0.03 of its potential returns per unit of risk. The Hunan Nanling Industrial is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,258 in Hunan Nanling Industrial on August 28, 2024 and sell it today you would lose (32.00) from holding Hunan Nanling Industrial or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
516220 vs. Hunan Nanling Industrial
Performance |
| Timeline |
| 516220 |
| Hunan Nanling Industrial |
516220 and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 516220 and Hunan Nanling
The main advantage of trading using opposite 516220 and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 516220 position performs unexpectedly, Hunan Nanling 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 Hunan Nanling will offset losses from the drop in Hunan Nanling's long position.| 516220 vs. Shenzhen MTC Co | 516220 vs. Ming Yang Smart | 516220 vs. Changzhou Almaden Co | 516220 vs. 159005 |
| Hunan Nanling vs. Bomin Electronics Co | Hunan Nanling vs. Aurora Optoelectronics Co | Hunan Nanling vs. TongFu Microelectronics Co | Hunan Nanling vs. Wuhan Yangtze Communication |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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