Correlation Between China State and Nanjing Canatal
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By analyzing existing cross correlation between China State Construction and Nanjing Canatal Data, you can compare the effects of market volatilities on China State and Nanjing Canatal 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 Nanjing Canatal. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Nanjing Canatal.
Diversification Opportunities for China State and Nanjing Canatal
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Nanjing is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Nanjing Canatal Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Canatal Data 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 Nanjing Canatal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Canatal Data has no effect on the direction of China State i.e., China State and Nanjing Canatal go up and down completely randomly.
Pair Corralation between China State and Nanjing Canatal
Assuming the 90 days trading horizon China State Construction is expected to generate 0.2 times more return on investment than Nanjing Canatal. However, China State Construction is 4.9 times less risky than Nanjing Canatal. It trades about -0.3 of its potential returns per unit of risk. Nanjing Canatal Data is currently generating about -0.16 per unit of risk. If you would invest 600.00 in China State Construction on October 22, 2024 and sell it today you would lose (37.00) from holding China State Construction or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Nanjing Canatal Data
Performance |
| Timeline |
| China State Construction |
| Nanjing Canatal Data |
China State and Nanjing Canatal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Nanjing Canatal
The main advantage of trading using opposite China State and Nanjing Canatal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Nanjing Canatal 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 Nanjing Canatal will offset losses from the drop in Nanjing Canatal's long position.| China State vs. Heilongjiang Publishing Media | China State vs. Threes Company Media | China State vs. China Publishing Media | China State vs. Will Semiconductor Co |
| Nanjing Canatal vs. Shenzhen MYS Environmental | Nanjing Canatal vs. AVIC Fund Management | Nanjing Canatal vs. Haoxiangni Jujube Co | Nanjing Canatal vs. Shenzhen Bingchuan Network |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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