Correlation Between Nantong Haixing and Zhejiang Kingland
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By analyzing existing cross correlation between Nantong Haixing Electronics and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Nantong Haixing and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Zhejiang Kingland.
Diversification Opportunities for Nantong Haixing and Zhejiang Kingland
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nantong and Zhejiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Nantong Haixing and Zhejiang Kingland
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to under-perform the Zhejiang Kingland. In addition to that, Nantong Haixing is 1.21 times more volatile than Zhejiang Kingland Pipeline. It trades about -0.03 of its total potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.02 per unit of volatility. If you would invest 629.00 in Zhejiang Kingland Pipeline on August 30, 2024 and sell it today you would lose (5.00) from holding Zhejiang Kingland Pipeline or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Nantong Haixing Elec |
| Zhejiang Kingland |
Nantong Haixing and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Zhejiang Kingland
The main advantage of trading using opposite Nantong Haixing and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Nantong Haixing vs. Hengerda New Materials | Nantong Haixing vs. Super Dragon Engineering Plastics | Nantong Haixing vs. Songz Automobile Air | Nantong Haixing vs. Malion New Materials |
| Zhejiang Kingland vs. Jiahe Foods Industry | Zhejiang Kingland vs. Qingdao Foods Co | Zhejiang Kingland vs. Guangdong Wens Foodstuff | Zhejiang Kingland vs. Shantou Wanshun Package |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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