Correlation Between Hang Xiao and Fujian Nanwang
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By analyzing existing cross correlation between Hang Xiao Steel and Fujian Nanwang Environment, you can compare the effects of market volatilities on Hang Xiao and Fujian Nanwang 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 Hang Xiao with a short position of Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hang Xiao and Fujian Nanwang.
Diversification Opportunities for Hang Xiao and Fujian Nanwang
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hang and Fujian is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Hang Xiao Steel and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir and Hang Xiao 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 Hang Xiao Steel are associated (or correlated) with Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Hang Xiao i.e., Hang Xiao and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Hang Xiao and Fujian Nanwang
Assuming the 90 days trading horizon Hang Xiao Steel is expected to under-perform the Fujian Nanwang. In addition to that, Hang Xiao is 1.18 times more volatile than Fujian Nanwang Environment. It trades about -0.07 of its total potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.12 per unit of volatility. If you would invest 1,192 in Fujian Nanwang Environment on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Fujian Nanwang Environment or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hang Xiao Steel vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Hang Xiao Steel |
| Fujian Nanwang Envir |
Hang Xiao and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hang Xiao and Fujian Nanwang
The main advantage of trading using opposite Hang Xiao and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hang Xiao position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Hang Xiao vs. Western Metal Materials | Hang Xiao vs. Heilongjiang Transport Development | Hang Xiao vs. Dezhan HealthCare Co | Hang Xiao vs. Shanghai Rongtai Health |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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