Correlation Between Inner Mongolia and Fujian Nanwang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Inner Mongolia BaoTou and Fujian Nanwang Environment, you can compare the effects of market volatilities on Inner Mongolia 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 Inner Mongolia with a short position of Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Fujian Nanwang.
Diversification Opportunities for Inner Mongolia and Fujian Nanwang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and Fujian is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou 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 Inner Mongolia 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 Inner Mongolia BaoTou 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 Inner Mongolia i.e., Inner Mongolia and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Inner Mongolia and Fujian Nanwang
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 2.19 times more return on investment than Fujian Nanwang. However, Inner Mongolia is 2.19 times more volatile than Fujian Nanwang Environment. It trades about 0.18 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.19 per unit of risk. If you would invest 168.00 in Inner Mongolia BaoTou on August 30, 2024 and sell it today you would earn a total of 25.00 from holding Inner Mongolia BaoTou or generate 14.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Fujian Nanwang Envir |
Inner Mongolia and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Fujian Nanwang
The main advantage of trading using opposite Inner Mongolia and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia 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.| Inner Mongolia vs. Pengxin International Mining | Inner Mongolia vs. Tibet Huayu Mining | Inner Mongolia vs. Western Metal Materials | Inner Mongolia vs. Shandong Longquan Pipeline |
| Fujian Nanwang vs. Shandong Gold Mining | Fujian Nanwang vs. Rongsheng Petrochemical Co | Fujian Nanwang vs. Inner Mongolia BaoTou | Fujian Nanwang vs. Jiangxi Ganfeng Lithium |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |