Correlation Between Nantong Haixing and Citic Offshore
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By analyzing existing cross correlation between Nantong Haixing Electronics and Citic Offshore Helicopter, you can compare the effects of market volatilities on Nantong Haixing and Citic Offshore 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 Nantong Haixing with a short position of Citic Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Citic Offshore.
Diversification Opportunities for Nantong Haixing and Citic Offshore
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nantong and Citic is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Citic Offshore Helicopter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Offshore Helicopter and Nantong Haixing 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 Nantong Haixing Electronics are associated (or correlated) with Citic Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Offshore Helicopter has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and Citic Offshore go up and down completely randomly.
Pair Corralation between Nantong Haixing and Citic Offshore
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to generate 0.59 times more return on investment than Citic Offshore. However, Nantong Haixing Electronics is 1.7 times less risky than Citic Offshore. It trades about -0.13 of its potential returns per unit of risk. Citic Offshore Helicopter is currently generating about -0.13 per unit of risk. If you would invest 1,385 in Nantong Haixing Electronics on October 17, 2024 and sell it today you would lose (89.00) from holding Nantong Haixing Electronics or give up 6.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Citic Offshore Helicopter
Performance |
| Timeline |
| Nantong Haixing Elec |
| Citic Offshore Helicopter |
Nantong Haixing and Citic Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Citic Offshore
The main advantage of trading using opposite Nantong Haixing and Citic Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, Citic Offshore 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 Citic Offshore will offset losses from the drop in Citic Offshore's long position.| Nantong Haixing vs. China Petroleum Chemical | Nantong Haixing vs. PetroChina Co Ltd | Nantong Haixing vs. China State Construction | Nantong Haixing vs. China Railway Group |
| Citic Offshore vs. Dongguan Tarry Electronics | Citic Offshore vs. Nantong Haixing Electronics | Citic Offshore vs. Xinya Electronic Co | Citic Offshore vs. Zhongrun Resources Investment |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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