Correlation Between Nantong Jiangshan and Chinese Universe
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By analyzing existing cross correlation between Nantong Jiangshan Agrochemical and Chinese Universe Publishing, you can compare the effects of market volatilities on Nantong Jiangshan and Chinese Universe 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 Nantong Jiangshan with a short position of Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Jiangshan and Chinese Universe.
Diversification Opportunities for Nantong Jiangshan and Chinese Universe
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nantong and Chinese is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Jiangshan Agrochemical and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub and Nantong Jiangshan 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 Nantong Jiangshan Agrochemical are associated (or correlated) with Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Nantong Jiangshan i.e., Nantong Jiangshan and Chinese Universe go up and down completely randomly.
Pair Corralation between Nantong Jiangshan and Chinese Universe
Assuming the 90 days trading horizon Nantong Jiangshan Agrochemical is expected to under-perform the Chinese Universe. But the stock apears to be less risky and, when comparing its historical volatility, Nantong Jiangshan Agrochemical is 1.06 times less risky than Chinese Universe. The stock trades about -0.01 of its potential returns per unit of risk. The Chinese Universe Publishing is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,363 in Chinese Universe Publishing on August 27, 2024 and sell it today you would lose (120.00) from holding Chinese Universe Publishing or give up 8.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Jiangshan Agrochemical vs. Chinese Universe Publishing
Performance |
| Timeline |
| Nantong Jiangshan |
| Chinese Universe Pub |
Nantong Jiangshan and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Jiangshan and Chinese Universe
The main advantage of trading using opposite Nantong Jiangshan and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Jiangshan position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Nantong Jiangshan vs. Zijin Mining Group | Nantong Jiangshan vs. Wanhua Chemical Group | Nantong Jiangshan vs. Baoshan Iron Steel | Nantong Jiangshan vs. Shandong Gold Mining |
| Chinese Universe vs. China State Construction | Chinese Universe vs. Huafa Industrial Co | Chinese Universe vs. China International Capital | Chinese Universe vs. Kweichow Moutai 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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