Correlation Between Northern United and Wanhua Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Northern United Publishing and Wanhua Chemical Group, you can compare the effects of market volatilities on Northern United and Wanhua Chemical 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 Northern United with a short position of Wanhua Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and Wanhua Chemical.
Diversification Opportunities for Northern United and Wanhua Chemical
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Northern and Wanhua is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing and Wanhua Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanhua Chemical Group and Northern United 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 Northern United Publishing are associated (or correlated) with Wanhua Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanhua Chemical Group has no effect on the direction of Northern United i.e., Northern United and Wanhua Chemical go up and down completely randomly.
Pair Corralation between Northern United and Wanhua Chemical
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 1.89 times more return on investment than Wanhua Chemical. However, Northern United is 1.89 times more volatile than Wanhua Chemical Group. It trades about 0.02 of its potential returns per unit of risk. Wanhua Chemical Group is currently generating about -0.02 per unit of risk. If you would invest 621.00 in Northern United Publishing on September 28, 2024 and sell it today you would earn a total of 43.00 from holding Northern United Publishing or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Northern United Publishing vs. Wanhua Chemical Group
Performance |
| Timeline |
| Northern United Publ |
| Wanhua Chemical Group |
Northern United and Wanhua Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and Wanhua Chemical
The main advantage of trading using opposite Northern United and Wanhua Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United position performs unexpectedly, Wanhua Chemical 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 Wanhua Chemical will offset losses from the drop in Wanhua Chemical's long position.| Northern United vs. PetroChina Co Ltd | Northern United vs. China Mobile Limited | Northern United vs. CNOOC Limited | Northern United vs. Ping An Insurance |
| Wanhua Chemical vs. Northern United Publishing | Wanhua Chemical vs. Xinhua Winshare Publishing | Wanhua Chemical vs. Tonghua Grape Wine | Wanhua Chemical vs. Duzhe Publishing Media |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |