Correlation Between Nantong Haixing and Hefei Metalforming
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By analyzing existing cross correlation between Nantong Haixing Electronics and Hefei Metalforming Mach, you can compare the effects of market volatilities on Nantong Haixing and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Hefei Metalforming.
Diversification Opportunities for Nantong Haixing and Hefei Metalforming
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nantong and Hefei is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Nantong Haixing and Hefei Metalforming
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to under-perform the Hefei Metalforming. But the stock apears to be less risky and, when comparing its historical volatility, Nantong Haixing Electronics is 2.05 times less risky than Hefei Metalforming. The stock trades about -0.06 of its potential returns per unit of risk. The Hefei Metalforming Mach is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 741.00 in Hefei Metalforming Mach on August 25, 2024 and sell it today you would earn a total of 79.00 from holding Hefei Metalforming Mach or generate 10.66% 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. Hefei Metalforming Mach
Performance |
| Timeline |
| Nantong Haixing Elec |
| Hefei Metalforming Mach |
Nantong Haixing and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Hefei Metalforming
The main advantage of trading using opposite Nantong Haixing and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Nantong Haixing vs. Vanfund Urban Investment | Nantong Haixing vs. Metro Investment Development | Nantong Haixing vs. Cultural Investment Holdings | Nantong Haixing vs. Luyin Investment Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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