Correlation Between Nantong Haixing and Songz Automobile
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By analyzing existing cross correlation between Nantong Haixing Electronics and Songz Automobile Air, you can compare the effects of market volatilities on Nantong Haixing and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Songz Automobile.
Diversification Opportunities for Nantong Haixing and Songz Automobile
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nantong and Songz is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and Songz Automobile go up and down completely randomly.
Pair Corralation between Nantong Haixing and Songz Automobile
Assuming the 90 days trading horizon Nantong Haixing is expected to generate 1.1 times less return on investment than Songz Automobile. But when comparing it to its historical volatility, Nantong Haixing Electronics is 1.2 times less risky than Songz Automobile. It trades about 0.06 of its potential returns per unit of risk. Songz Automobile Air is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 673.00 in Songz Automobile Air on October 25, 2024 and sell it today you would earn a total of 15.00 from holding Songz Automobile Air or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Songz Automobile Air
Performance |
| Timeline |
| Nantong Haixing Elec |
| Songz Automobile Air |
Nantong Haixing and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Songz Automobile
The main advantage of trading using opposite Nantong Haixing and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Nantong Haixing vs. Kweichow Moutai Co | Nantong Haixing vs. Contemporary Amperex Technology | Nantong Haixing vs. Beijing Roborock Technology | Nantong Haixing vs. BYD Co Ltd |
| Songz Automobile vs. PetroChina Co Ltd | Songz Automobile vs. Gansu Jiu Steel | Songz Automobile vs. Ming Yang Smart | Songz Automobile vs. Aba Chemicals Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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