Correlation Between New China and Porton Fine
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By analyzing existing cross correlation between New China Life and Porton Fine Chemicals, you can compare the effects of market volatilities on New China and Porton Fine 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 New China with a short position of Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Porton Fine.
Diversification Opportunities for New China and Porton Fine
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Porton is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding New China Life and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals and New China 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 New China Life are associated (or correlated) with Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of New China i.e., New China and Porton Fine go up and down completely randomly.
Pair Corralation between New China and Porton Fine
Assuming the 90 days trading horizon New China is expected to generate 3.12 times less return on investment than Porton Fine. In addition to that, New China is 1.34 times more volatile than Porton Fine Chemicals. It trades about 0.03 of its total potential returns per unit of risk. Porton Fine Chemicals is currently generating about 0.11 per unit of volatility. If you would invest 1,527 in Porton Fine Chemicals on November 3, 2024 and sell it today you would earn a total of 49.00 from holding Porton Fine Chemicals or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
New China Life vs. Porton Fine Chemicals
Performance |
| Timeline |
| New China Life |
| Porton Fine Chemicals |
New China and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New China and Porton Fine
The main advantage of trading using opposite New China and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| New China vs. Ye Chiu Metal | New China vs. Hangzhou Arcvideo Technology | New China vs. China Aluminum International | New China vs. Hefei Metalforming Mach |
| Porton Fine vs. Shenzhen Centralcon Investment | Porton Fine vs. Ingenic Semiconductor | Porton Fine vs. Henan Shuanghui Investment | Porton Fine vs. Xiandai Investment 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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