Correlation Between Sichuan Teway and Nantong Haixing
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By analyzing existing cross correlation between Sichuan Teway Food and Nantong Haixing Electronics, you can compare the effects of market volatilities on Sichuan Teway and Nantong Haixing 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 Sichuan Teway with a short position of Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Teway and Nantong Haixing.
Diversification Opportunities for Sichuan Teway and Nantong Haixing
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Nantong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Teway Food and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec and Sichuan Teway 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 Sichuan Teway Food are associated (or correlated) with Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Sichuan Teway i.e., Sichuan Teway and Nantong Haixing go up and down completely randomly.
Pair Corralation between Sichuan Teway and Nantong Haixing
Assuming the 90 days trading horizon Sichuan Teway is expected to generate 1.36 times less return on investment than Nantong Haixing. In addition to that, Sichuan Teway is 1.06 times more volatile than Nantong Haixing Electronics. It trades about 0.01 of its total potential returns per unit of risk. Nantong Haixing Electronics is currently generating about 0.02 per unit of volatility. If you would invest 1,246 in Nantong Haixing Electronics on October 12, 2024 and sell it today you would earn a total of 26.00 from holding Nantong Haixing Electronics or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Teway Food vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Sichuan Teway Food |
| Nantong Haixing Elec |
Sichuan Teway and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Teway and Nantong Haixing
The main advantage of trading using opposite Sichuan Teway and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Teway position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Sichuan Teway vs. Eyebright Medical Technology | Sichuan Teway vs. Keeson Technology Corp | Sichuan Teway vs. Qiaoyin Environmental Tech | Sichuan Teway vs. ROPEOK Technology Group |
| Nantong Haixing vs. Tianjin Hi Tech Development | Nantong Haixing vs. Allwin Telecommunication Co | Nantong Haixing vs. Sichuan Teway Food | Nantong Haixing vs. Jiangxi Hengda Hi Tech |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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