Correlation Between Nanjing Canatal and Dongxing Sec
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By analyzing existing cross correlation between Nanjing Canatal Data and Dongxing Sec Co, you can compare the effects of market volatilities on Nanjing Canatal and Dongxing Sec 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 Nanjing Canatal with a short position of Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Canatal and Dongxing Sec.
Diversification Opportunities for Nanjing Canatal and Dongxing Sec
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nanjing and Dongxing is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Canatal Data and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec and Nanjing Canatal 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 Nanjing Canatal Data are associated (or correlated) with Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Nanjing Canatal i.e., Nanjing Canatal and Dongxing Sec go up and down completely randomly.
Pair Corralation between Nanjing Canatal and Dongxing Sec
Assuming the 90 days trading horizon Nanjing Canatal is expected to generate 1.06 times less return on investment than Dongxing Sec. In addition to that, Nanjing Canatal is 2.06 times more volatile than Dongxing Sec Co. It trades about 0.03 of its total potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.07 per unit of volatility. If you would invest 1,035 in Dongxing Sec Co on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Dongxing Sec Co or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Canatal Data vs. Dongxing Sec Co
Performance |
| Timeline |
| Nanjing Canatal Data |
| Dongxing Sec |
Nanjing Canatal and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Canatal and Dongxing Sec
The main advantage of trading using opposite Nanjing Canatal and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Canatal position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Nanjing Canatal vs. Silkroad Visual Technology | Nanjing Canatal vs. XiAn Dagang Road | Nanjing Canatal vs. Dazhong Transportation Group | Nanjing Canatal vs. Henan Shuanghui Investment |
| Dongxing Sec vs. Xiangyang Automobile Bearing | Dongxing Sec vs. Bank of Communications | Dongxing Sec vs. China Mobile Limited | Dongxing Sec vs. YiDong Electronics 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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