Correlation Between Nantong Haixing and Shaanxi Meineng
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By analyzing existing cross correlation between Nantong Haixing Electronics and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Nantong Haixing and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Shaanxi Meineng.
Diversification Opportunities for Nantong Haixing and Shaanxi Meineng
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nantong and Shaanxi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Nantong Haixing and Shaanxi Meineng
Assuming the 90 days trading horizon Nantong Haixing is expected to generate 1.81 times less return on investment than Shaanxi Meineng. But when comparing it to its historical volatility, Nantong Haixing Electronics is 1.36 times less risky than Shaanxi Meineng. It trades about 0.13 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,262 in Shaanxi Meineng Clean on September 2, 2024 and sell it today you would earn a total of 120.00 from holding Shaanxi Meineng Clean or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Nantong Haixing Elec |
| Shaanxi Meineng Clean |
Nantong Haixing and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Shaanxi Meineng
The main advantage of trading using opposite Nantong Haixing and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Nantong Haixing vs. Cultural Investment Holdings | Nantong Haixing vs. Gome Telecom Equipment | Nantong Haixing vs. Bus Online Co | Nantong Haixing vs. Holitech Technology Co |
| Shaanxi Meineng vs. Tibet Huayu Mining | Shaanxi Meineng vs. Shenzhen Topway Video | Shaanxi Meineng vs. Leyard Optoelectronic | Shaanxi Meineng vs. Nantong Haixing Electronics |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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