Correlation Between Nancal Energy and Changchun Faway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nancal Energy Saving Tech and Changchun Faway Automobile, you can compare the effects of market volatilities on Nancal Energy and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nancal Energy and Changchun Faway.
Diversification Opportunities for Nancal Energy and Changchun Faway
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Nancal and Changchun is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Nancal Energy Saving Tech and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Nancal Energy i.e., Nancal Energy and Changchun Faway go up and down completely randomly.
Pair Corralation between Nancal Energy and Changchun Faway
Assuming the 90 days trading horizon Nancal Energy Saving Tech is expected to under-perform the Changchun Faway. In addition to that, Nancal Energy is 1.58 times more volatile than Changchun Faway Automobile. It trades about -0.01 of its total potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.02 per unit of volatility. If you would invest 936.00 in Changchun Faway Automobile on August 25, 2024 and sell it today you would earn a total of 39.00 from holding Changchun Faway Automobile or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nancal Energy Saving Tech vs. Changchun Faway Automobile
Performance |
| Timeline |
| Nancal Energy Saving |
| Changchun Faway Auto |
Nancal Energy and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nancal Energy and Changchun Faway
The main advantage of trading using opposite Nancal Energy and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nancal Energy position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| Nancal Energy vs. Chengdu Kanghua Biological | Nancal Energy vs. Beijing Wantai Biological | Nancal Energy vs. Suzhou Novoprotein Scientific | Nancal Energy vs. Aluminum Corp of |
| Changchun Faway vs. Shenzhen Zhongzhuang Construction | Changchun Faway vs. Kuangda Technology Group | Changchun Faway vs. Glodon Software Co | Changchun Faway vs. Hubei Forbon Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stocks Directory Find actively traded stocks across global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |