Correlation Between Namchow Food and Yuan Longping
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By analyzing existing cross correlation between Namchow Food Group and Yuan Longping High tech, you can compare the effects of market volatilities on Namchow Food and Yuan Longping 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 Namchow Food with a short position of Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namchow Food and Yuan Longping.
Diversification Opportunities for Namchow Food and Yuan Longping
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Namchow and Yuan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Namchow Food Group and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High and Namchow Food 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 Namchow Food Group are associated (or correlated) with Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Namchow Food i.e., Namchow Food and Yuan Longping go up and down completely randomly.
Pair Corralation between Namchow Food and Yuan Longping
Assuming the 90 days trading horizon Namchow Food Group is expected to generate 1.67 times more return on investment than Yuan Longping. However, Namchow Food is 1.67 times more volatile than Yuan Longping High tech. It trades about 0.23 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.05 per unit of risk. If you would invest 1,719 in Namchow Food Group on September 15, 2024 and sell it today you would earn a total of 205.00 from holding Namchow Food Group or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namchow Food Group vs. Yuan Longping High tech
Performance |
| Timeline |
| Namchow Food Group |
| Yuan Longping High |
Namchow Food and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namchow Food and Yuan Longping
The main advantage of trading using opposite Namchow Food and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namchow Food position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Namchow Food vs. Jiangsu Xinri E Vehicle | Namchow Food vs. Wuhan Hvsen Biotechnology | Namchow Food vs. Ningbo Fangzheng Automobile | Namchow Food vs. Jiangsu GDK Biotechnology |
| Yuan Longping vs. Eastern Communications Co | Yuan Longping vs. Sichuan Teway Food | Yuan Longping vs. Zhongyin Babi Food | Yuan Longping vs. Namchow Food Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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