Correlation Between Gansu Yasheng and Fujian Nanwang
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Fujian Nanwang Environment, you can compare the effects of market volatilities on Gansu Yasheng 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 Gansu Yasheng with a short position of Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Fujian Nanwang.
Diversification Opportunities for Gansu Yasheng and Fujian Nanwang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Fujian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial 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 Gansu Yasheng 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 Gansu Yasheng Industrial 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 Gansu Yasheng i.e., Gansu Yasheng and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Fujian Nanwang
Assuming the 90 days trading horizon Gansu Yasheng Industrial is expected to generate 0.75 times more return on investment than Fujian Nanwang. However, Gansu Yasheng Industrial is 1.33 times less risky than Fujian Nanwang. It trades about 0.03 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 289.00 in Gansu Yasheng Industrial on September 4, 2024 and sell it today you would earn a total of 29.00 from holding Gansu Yasheng Industrial or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Fujian Nanwang Envir |
Gansu Yasheng and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Fujian Nanwang
The main advantage of trading using opposite Gansu Yasheng and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng 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.| Gansu Yasheng vs. Sanbo Hospital Management | Gansu Yasheng vs. Huatian Hotel Group | Gansu Yasheng vs. Andon Health Co | Gansu Yasheng vs. Yunnan Jianzhijia Health Chain |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Rongsheng Petrochemical 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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