Correlation Between Namchow Food and Fushun Special
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By analyzing existing cross correlation between Namchow Food Group and Fushun Special Steel, you can compare the effects of market volatilities on Namchow Food and Fushun Special 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 Fushun Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namchow Food and Fushun Special.
Diversification Opportunities for Namchow Food and Fushun Special
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Namchow and Fushun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Namchow Food Group and Fushun Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fushun Special Steel 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 Fushun Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fushun Special Steel has no effect on the direction of Namchow Food i.e., Namchow Food and Fushun Special go up and down completely randomly.
Pair Corralation between Namchow Food and Fushun Special
Assuming the 90 days trading horizon Namchow Food Group is expected to under-perform the Fushun Special. But the stock apears to be less risky and, when comparing its historical volatility, Namchow Food Group is 1.89 times less risky than Fushun Special. The stock trades about -0.01 of its potential returns per unit of risk. The Fushun Special Steel is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 630.00 in Fushun Special Steel on August 29, 2024 and sell it today you would lose (6.00) from holding Fushun Special Steel or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namchow Food Group vs. Fushun Special Steel
Performance |
| Timeline |
| Namchow Food Group |
| Fushun Special Steel |
Namchow Food and Fushun Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namchow Food and Fushun Special
The main advantage of trading using opposite Namchow Food and Fushun Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namchow Food position performs unexpectedly, Fushun Special 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 Fushun Special will offset losses from the drop in Fushun Special's long position.| Namchow Food vs. Sportsoul Co Ltd | Namchow Food vs. Guangdong Jingyi Metal | Namchow Food vs. Sino Platinum Metals Co | Namchow Food vs. Shanghai Yanpu Metal |
| Fushun Special vs. Wanhua Chemical Group | Fushun Special vs. Baoshan Iron Steel | Fushun Special vs. Shandong Gold Mining | Fushun Special vs. Rongsheng Petrochemical Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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