Correlation Between Flat Glass and Nanjing Medlander
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By analyzing existing cross correlation between Flat Glass Group and Nanjing Medlander Medical, you can compare the effects of market volatilities on Flat Glass and Nanjing Medlander 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 Flat Glass with a short position of Nanjing Medlander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flat Glass and Nanjing Medlander.
Diversification Opportunities for Flat Glass and Nanjing Medlander
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Flat and Nanjing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Flat Glass Group and Nanjing Medlander Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Medlander Medical and Flat Glass 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 Flat Glass Group are associated (or correlated) with Nanjing Medlander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Medlander Medical has no effect on the direction of Flat Glass i.e., Flat Glass and Nanjing Medlander go up and down completely randomly.
Pair Corralation between Flat Glass and Nanjing Medlander
Assuming the 90 days trading horizon Flat Glass Group is expected to generate 1.08 times more return on investment than Nanjing Medlander. However, Flat Glass is 1.08 times more volatile than Nanjing Medlander Medical. It trades about 0.02 of its potential returns per unit of risk. Nanjing Medlander Medical is currently generating about -0.01 per unit of risk. If you would invest 2,323 in Flat Glass Group on September 14, 2024 and sell it today you would earn a total of 73.00 from holding Flat Glass Group or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flat Glass Group vs. Nanjing Medlander Medical
Performance |
| Timeline |
| Flat Glass Group |
| Nanjing Medlander Medical |
Flat Glass and Nanjing Medlander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flat Glass and Nanjing Medlander
The main advantage of trading using opposite Flat Glass and Nanjing Medlander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flat Glass position performs unexpectedly, Nanjing Medlander 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 Medlander will offset losses from the drop in Nanjing Medlander's long position.| Flat Glass vs. DO Home Collection | Flat Glass vs. Vohringer Home Technology | Flat Glass vs. Unisplendour Corp | Flat Glass vs. Suofeiya Home Collection |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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