Correlation Between Nantong Haixing and Chahua Modern
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By analyzing existing cross correlation between Nantong Haixing Electronics and Chahua Modern Housewares, you can compare the effects of market volatilities on Nantong Haixing and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Chahua Modern.
Diversification Opportunities for Nantong Haixing and Chahua Modern
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nantong and Chahua is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and Chahua Modern go up and down completely randomly.
Pair Corralation between Nantong Haixing and Chahua Modern
Assuming the 90 days trading horizon Nantong Haixing is expected to generate 6.71 times less return on investment than Chahua Modern. But when comparing it to its historical volatility, Nantong Haixing Electronics is 2.25 times less risky than Chahua Modern. It trades about 0.0 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,017 in Chahua Modern Housewares on September 12, 2024 and sell it today you would lose (17.00) from holding Chahua Modern Housewares or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Chahua Modern Housewares
Performance |
| Timeline |
| Nantong Haixing Elec |
| Chahua Modern Housewares |
Nantong Haixing and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Chahua Modern
The main advantage of trading using opposite Nantong Haixing and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Nantong Haixing vs. Agricultural Bank of | Nantong Haixing vs. Industrial and Commercial | Nantong Haixing vs. Bank of China | Nantong Haixing vs. PetroChina Co Ltd |
| Chahua Modern vs. Lutian Machinery Co | Chahua Modern vs. PetroChina Co Ltd | Chahua Modern vs. Bank of China | Chahua Modern vs. Gansu Jiu Steel |
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 Directory module to find actively traded commodities issued by global exchanges.
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