Correlation Between Nantong Haixing and Leaguer Shenzhen
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By analyzing existing cross correlation between Nantong Haixing Electronics and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Nantong Haixing and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Leaguer Shenzhen.
Diversification Opportunities for Nantong Haixing and Leaguer Shenzhen
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nantong and Leaguer is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Nantong Haixing and Leaguer Shenzhen
Assuming the 90 days trading horizon Nantong Haixing Electronics is expected to under-perform the Leaguer Shenzhen. But the stock apears to be less risky and, when comparing its historical volatility, Nantong Haixing Electronics is 1.5 times less risky than Leaguer Shenzhen. The stock trades about 0.0 of its potential returns per unit of risk. The Leaguer Shenzhen MicroElectronics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,368 in Leaguer Shenzhen MicroElectronics on November 28, 2024 and sell it today you would lose (483.00) from holding Leaguer Shenzhen MicroElectronics or give up 14.34% 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. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Nantong Haixing Elec |
| Leaguer Shenzhen Mic |
Nantong Haixing and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Leaguer Shenzhen
The main advantage of trading using opposite Nantong Haixing and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.| Nantong Haixing vs. Guangzhou Seagull Kitchen | Nantong Haixing vs. Zhongyin Babi Food | Nantong Haixing vs. Ligao Foods CoLtd | Nantong Haixing vs. Elite Color Environmental |
| Leaguer Shenzhen vs. Shanghai Yanpu Metal | Leaguer Shenzhen vs. Shenzhen Urban Transport | Leaguer Shenzhen vs. Hainan Haiqi Transportation | Leaguer Shenzhen vs. Guangdong Jingyi Metal |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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