Correlation Between Tonghua Grape and Nanjing Vishee
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By analyzing existing cross correlation between Tonghua Grape Wine and Nanjing Vishee Medical, you can compare the effects of market volatilities on Tonghua Grape and Nanjing Vishee 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 Tonghua Grape with a short position of Nanjing Vishee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonghua Grape and Nanjing Vishee.
Diversification Opportunities for Tonghua Grape and Nanjing Vishee
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tonghua and Nanjing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tonghua Grape Wine and Nanjing Vishee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Vishee Medical and Tonghua Grape 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 Tonghua Grape Wine are associated (or correlated) with Nanjing Vishee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Vishee Medical has no effect on the direction of Tonghua Grape i.e., Tonghua Grape and Nanjing Vishee go up and down completely randomly.
Pair Corralation between Tonghua Grape and Nanjing Vishee
Assuming the 90 days trading horizon Tonghua Grape Wine is expected to under-perform the Nanjing Vishee. In addition to that, Tonghua Grape is 1.45 times more volatile than Nanjing Vishee Medical. It trades about -0.21 of its total potential returns per unit of risk. Nanjing Vishee Medical is currently generating about -0.03 per unit of volatility. If you would invest 2,735 in Nanjing Vishee Medical on November 3, 2024 and sell it today you would lose (33.00) from holding Nanjing Vishee Medical or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tonghua Grape Wine vs. Nanjing Vishee Medical
Performance |
| Timeline |
| Tonghua Grape Wine |
| Nanjing Vishee Medical |
Tonghua Grape and Nanjing Vishee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tonghua Grape and Nanjing Vishee
The main advantage of trading using opposite Tonghua Grape and Nanjing Vishee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonghua Grape position performs unexpectedly, Nanjing Vishee 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 Nanjing Vishee will offset losses from the drop in Nanjing Vishee's long position.| Tonghua Grape vs. Shenzhen Noposion Agrochemicals | Tonghua Grape vs. Beijing Mainstreets Investment | Tonghua Grape vs. Beingmate Baby Child | Tonghua Grape vs. Shenzhen Zqgame |
| Nanjing Vishee vs. Industrial and Commercial | Nanjing Vishee vs. China Construction Bank | Nanjing Vishee vs. Agricultural Bank of | Nanjing Vishee vs. Bank of China |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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