Correlation Between Nantong Haixing and East Money
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By analyzing existing cross correlation between Nantong Haixing Electronics and East Money Information, you can compare the effects of market volatilities on Nantong Haixing and East Money 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 East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and East Money.
Diversification Opportunities for Nantong Haixing and East Money
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nantong and East is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information 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 East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and East Money go up and down completely randomly.
Pair Corralation between Nantong Haixing and East Money
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to generate 0.62 times more return on investment than East Money. However, Nantong Haixing Electronics is 1.61 times less risky than East Money. It trades about 0.08 of its potential returns per unit of risk. East Money Information is currently generating about -0.02 per unit of risk. If you would invest 1,356 in Nantong Haixing Electronics on September 13, 2024 and sell it today you would earn a total of 39.00 from holding Nantong Haixing Electronics or generate 2.88% 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. East Money Information
Performance |
| Timeline |
| Nantong Haixing Elec |
| East Money Information |
Nantong Haixing and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and East Money
The main advantage of trading using opposite Nantong Haixing and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.| Nantong Haixing vs. Industrial and Commercial | Nantong Haixing vs. Agricultural Bank of | Nantong Haixing vs. China Construction Bank | Nantong Haixing vs. Bank of China |
| East Money vs. Kweichow Moutai Co | East Money vs. Shenzhen Mindray Bio Medical | East Money vs. G bits Network Technology | East Money vs. Beijing Roborock Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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