Correlation Between Nanning Chemical and Anhui Transport
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By analyzing existing cross correlation between Nanning Chemical Industry and Anhui Transport Consulting, you can compare the effects of market volatilities on Nanning Chemical and Anhui Transport 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 Nanning Chemical with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanning Chemical and Anhui Transport.
Diversification Opportunities for Nanning Chemical and Anhui Transport
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanning and Anhui is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nanning Chemical Industry and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons and Nanning Chemical 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 Nanning Chemical Industry are associated (or correlated) with Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Nanning Chemical i.e., Nanning Chemical and Anhui Transport go up and down completely randomly.
Pair Corralation between Nanning Chemical and Anhui Transport
Assuming the 90 days trading horizon Nanning Chemical Industry is expected to generate 2.08 times more return on investment than Anhui Transport. However, Nanning Chemical is 2.08 times more volatile than Anhui Transport Consulting. It trades about 0.13 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about -0.02 per unit of risk. If you would invest 1,690 in Nanning Chemical Industry on November 6, 2024 and sell it today you would earn a total of 72.00 from holding Nanning Chemical Industry or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanning Chemical Industry vs. Anhui Transport Consulting
Performance |
| Timeline |
| Nanning Chemical Industry |
| Anhui Transport Cons |
Nanning Chemical and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanning Chemical and Anhui Transport
The main advantage of trading using opposite Nanning Chemical and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanning Chemical position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Nanning Chemical vs. Xiangpiaopiao Food Co | Nanning Chemical vs. Jiajia Food Group | Nanning Chemical vs. JuneYao Dairy Co | Nanning Chemical vs. Senci Electric Machinery |
| Anhui Transport vs. DO Home Collection | Anhui Transport vs. Vohringer Home Technology | Anhui Transport vs. Jiangyin Jianghua Microelectronics | Anhui Transport vs. Quectel Wireless Solutions |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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