Correlation Between China State and Nantong Haixing
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By analyzing existing cross correlation between China State Construction and Nantong Haixing Electronics, you can compare the effects of market volatilities on China State and Nantong Haixing 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 China State with a short position of Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Nantong Haixing.
Diversification Opportunities for China State and Nantong Haixing
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Nantong is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec and China State 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 China State Construction are associated (or correlated) with Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of China State i.e., China State and Nantong Haixing go up and down completely randomly.
Pair Corralation between China State and Nantong Haixing
Assuming the 90 days trading horizon China State Construction is expected to under-perform the Nantong Haixing. In addition to that, China State is 1.03 times more volatile than Nantong Haixing Electronics. It trades about -0.01 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about 0.07 per unit of volatility. If you would invest 1,373 in Nantong Haixing Electronics on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Nantong Haixing Electronics or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Nantong Haixing Electronics
Performance |
| Timeline |
| China State Construction |
| Nantong Haixing Elec |
China State and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Nantong Haixing
The main advantage of trading using opposite China State and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| China State vs. Hunan Investment Group | China State vs. Huaibei Mining Holdings | China State vs. Metro Investment Development | China State vs. Postal Savings Bank |
| Nantong Haixing vs. Cultural Investment Holdings | Nantong Haixing vs. Gome Telecom Equipment | Nantong Haixing vs. Bus Online Co | Nantong Haixing vs. Holitech Technology 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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