Correlation Between Gemdale Corp and Nanhua Bio
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By analyzing existing cross correlation between Gemdale Corp and Nanhua Bio Medicine, you can compare the effects of market volatilities on Gemdale Corp and Nanhua Bio 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 Gemdale Corp with a short position of Nanhua Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemdale Corp and Nanhua Bio.
Diversification Opportunities for Gemdale Corp and Nanhua Bio
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gemdale and Nanhua is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Gemdale Corp and Nanhua Bio Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanhua Bio Medicine and Gemdale Corp 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 Gemdale Corp are associated (or correlated) with Nanhua Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanhua Bio Medicine has no effect on the direction of Gemdale Corp i.e., Gemdale Corp and Nanhua Bio go up and down completely randomly.
Pair Corralation between Gemdale Corp and Nanhua Bio
Assuming the 90 days trading horizon Gemdale Corp is expected to generate 0.49 times more return on investment than Nanhua Bio. However, Gemdale Corp is 2.03 times less risky than Nanhua Bio. It trades about -0.21 of its potential returns per unit of risk. Nanhua Bio Medicine is currently generating about -0.14 per unit of risk. If you would invest 494.00 in Gemdale Corp on October 17, 2024 and sell it today you would lose (43.00) from holding Gemdale Corp or give up 8.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemdale Corp vs. Nanhua Bio Medicine
Performance |
| Timeline |
| Gemdale Corp |
| Nanhua Bio Medicine |
Gemdale Corp and Nanhua Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemdale Corp and Nanhua Bio
The main advantage of trading using opposite Gemdale Corp and Nanhua Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemdale Corp position performs unexpectedly, Nanhua Bio 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 Nanhua Bio will offset losses from the drop in Nanhua Bio's long position.| Gemdale Corp vs. HaiXin Foods Co | Gemdale Corp vs. Beijing Sanyuan Foods | Gemdale Corp vs. Hainan Haiqi Transportation | Gemdale Corp vs. Qingdao Foods Co |
| Nanhua Bio vs. Bank of Communications | Nanhua Bio vs. Telling Telecommunication Holding | Nanhua Bio vs. Bosera CMSK Industrial | Nanhua Bio vs. Tibet Huayu Mining |
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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