Correlation Between Industrial Securities and Fujian Nanwang
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By analyzing existing cross correlation between Industrial Securities Co and Fujian Nanwang Environment, you can compare the effects of market volatilities on Industrial Securities 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 Industrial Securities with a short position of Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial Securities and Fujian Nanwang.
Diversification Opportunities for Industrial Securities and Fujian Nanwang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Industrial and Fujian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Industrial Securities Co 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 Industrial Securities 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 Industrial Securities Co 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 Industrial Securities i.e., Industrial Securities and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Industrial Securities and Fujian Nanwang
Assuming the 90 days trading horizon Industrial Securities is expected to generate 7.01 times less return on investment than Fujian Nanwang. In addition to that, Industrial Securities is 1.41 times more volatile than Fujian Nanwang Environment. It trades about 0.02 of its total potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.17 per unit of volatility. If you would invest 1,170 in Fujian Nanwang Environment on September 2, 2024 and sell it today you would earn a total of 72.00 from holding Fujian Nanwang Environment or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial Securities Co vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Industrial Securities |
| Fujian Nanwang Envir |
Industrial Securities and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial Securities and Fujian Nanwang
The main advantage of trading using opposite Industrial Securities and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial Securities 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.| Industrial Securities vs. BeiGene | Industrial Securities vs. Kweichow Moutai Co | Industrial Securities vs. Beijing Roborock Technology | Industrial Securities vs. G bits Network Technology |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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