Correlation Between Nantong Haixing and RoadMain T
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By analyzing existing cross correlation between Nantong Haixing Electronics and RoadMain T Co, you can compare the effects of market volatilities on Nantong Haixing and RoadMain T 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 RoadMain T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and RoadMain T.
Diversification Opportunities for Nantong Haixing and RoadMain T
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nantong and RoadMain is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and RoadMain T Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RoadMain T 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 RoadMain T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RoadMain T has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and RoadMain T go up and down completely randomly.
Pair Corralation between Nantong Haixing and RoadMain T
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to under-perform the RoadMain T. But the stock apears to be less risky and, when comparing its historical volatility, Nantong Haixing Electronics is 1.65 times less risky than RoadMain T. The stock trades about -0.02 of its potential returns per unit of risk. The RoadMain T Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,488 in RoadMain T Co on October 16, 2024 and sell it today you would earn a total of 214.00 from holding RoadMain T Co or generate 8.6% 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. RoadMain T Co
Performance |
| Timeline |
| Nantong Haixing Elec |
| RoadMain T |
Nantong Haixing and RoadMain T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and RoadMain T
The main advantage of trading using opposite Nantong Haixing and RoadMain T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, RoadMain T 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 RoadMain T will offset losses from the drop in RoadMain T's long position.| Nantong Haixing vs. Jinhui Mining Co | Nantong Haixing vs. HeBei Jinniu Chemical | Nantong Haixing vs. Tibet Huayu Mining | Nantong Haixing vs. Zhengzhou Coal Mining |
| RoadMain T vs. JiShi Media Co | RoadMain T vs. Nantong Haixing Electronics | RoadMain T vs. Peoples Insurance of | RoadMain T vs. Huayi Brothers Media |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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