Correlation Between Nantong Haixing and Guobo Electronics
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By analyzing existing cross correlation between Nantong Haixing Electronics and Guobo Electronics Co, you can compare the effects of market volatilities on Nantong Haixing and Guobo Electronics 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 Guobo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Guobo Electronics.
Diversification Opportunities for Nantong Haixing and Guobo Electronics
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nantong and Guobo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Guobo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guobo Electronics 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 Guobo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guobo Electronics has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and Guobo Electronics go up and down completely randomly.
Pair Corralation between Nantong Haixing and Guobo Electronics
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to under-perform the Guobo Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Nantong Haixing Electronics is 1.02 times less risky than Guobo Electronics. The stock trades about -0.06 of its potential returns per unit of risk. The Guobo Electronics Co is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 4,670 in Guobo Electronics Co on October 18, 2024 and sell it today you would lose (120.00) from holding Guobo Electronics Co or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Guobo Electronics Co
Performance |
| Timeline |
| Nantong Haixing Elec |
| Guobo Electronics |
Nantong Haixing and Guobo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Guobo Electronics
The main advantage of trading using opposite Nantong Haixing and Guobo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, Guobo Electronics 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 Guobo Electronics will offset losses from the drop in Guobo Electronics' long position.| Nantong Haixing vs. China Petroleum Chemical | Nantong Haixing vs. PetroChina Co Ltd | Nantong Haixing vs. China State Construction | Nantong Haixing vs. China Railway Group |
| Guobo Electronics vs. Hainan Haiqi Transportation | Guobo Electronics vs. Xinjiang Beixin RoadBridge | Guobo Electronics vs. Jiangsu Financial Leasing | Guobo Electronics vs. Anshan Senyuan Road |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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