Correlation Between Wanhua Chemical and Hunan Nanling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wanhua Chemical Group and Hunan Nanling Industrial, you can compare the effects of market volatilities on Wanhua Chemical 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 Wanhua Chemical with a short position of Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wanhua Chemical and Hunan Nanling.
Diversification Opportunities for Wanhua Chemical and Hunan Nanling
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wanhua and Hunan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Wanhua Chemical Group 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 Wanhua 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 Wanhua Chemical Group 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 Wanhua Chemical i.e., Wanhua Chemical and Hunan Nanling go up and down completely randomly.
Pair Corralation between Wanhua Chemical and Hunan Nanling
Assuming the 90 days trading horizon Wanhua Chemical Group is expected to generate 0.78 times more return on investment than Hunan Nanling. However, Wanhua Chemical Group is 1.29 times less risky than Hunan Nanling. It trades about -0.1 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about -0.36 per unit of risk. If you would invest 7,009 in Wanhua Chemical Group on November 4, 2024 and sell it today you would lose (156.00) from holding Wanhua Chemical Group or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wanhua Chemical Group vs. Hunan Nanling Industrial
Performance |
| Timeline |
| Wanhua Chemical Group |
| Hunan Nanling Industrial |
Wanhua Chemical and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wanhua Chemical and Hunan Nanling
The main advantage of trading using opposite Wanhua Chemical and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wanhua Chemical 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.| Wanhua Chemical vs. Jinhui Mining Co | Wanhua Chemical vs. Shenyang Chemical Industry | Wanhua Chemical vs. Hainan Mining Co | Wanhua Chemical vs. Dymatic Chemicals |
| Hunan Nanling vs. Xiamen Insight Investment | Hunan Nanling vs. Sichuan Yahua Industrial | Hunan Nanling vs. Hainan Mining Co | Hunan Nanling vs. Shaanxi Energy Investment |
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 Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |