Correlation Between Nancal Energy and Fujian Newland
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By analyzing existing cross correlation between Nancal Energy Saving Tech and Fujian Newland Computer, you can compare the effects of market volatilities on Nancal Energy and Fujian Newland 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 Nancal Energy with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nancal Energy and Fujian Newland.
Diversification Opportunities for Nancal Energy and Fujian Newland
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nancal and Fujian is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Nancal Energy Saving Tech and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer and Nancal Energy 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 Nancal Energy Saving Tech are associated (or correlated) with Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Nancal Energy i.e., Nancal Energy and Fujian Newland go up and down completely randomly.
Pair Corralation between Nancal Energy and Fujian Newland
Assuming the 90 days trading horizon Nancal Energy is expected to generate 1.84 times less return on investment than Fujian Newland. In addition to that, Nancal Energy is 1.33 times more volatile than Fujian Newland Computer. It trades about 0.02 of its total potential returns per unit of risk. Fujian Newland Computer is currently generating about 0.05 per unit of volatility. If you would invest 1,284 in Fujian Newland Computer on September 3, 2024 and sell it today you would earn a total of 853.00 from holding Fujian Newland Computer or generate 66.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nancal Energy Saving Tech vs. Fujian Newland Computer
Performance |
| Timeline |
| Nancal Energy Saving |
| Fujian Newland Computer |
Nancal Energy and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nancal Energy and Fujian Newland
The main advantage of trading using opposite Nancal Energy and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nancal Energy position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Nancal Energy vs. Jilin Chemical Fibre | Nancal Energy vs. Xinjiang Zhongtai Chemical | Nancal Energy vs. Shenyang Chemical Industry | Nancal Energy vs. Anhui Liuguo Chemical |
| Fujian Newland vs. Haima Automobile Group | Fujian Newland vs. Nancal Energy Saving Tech | Fujian Newland vs. Panda Financial Holding | Fujian Newland vs. Ping An Insurance |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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