Correlation Between Shuang Bang and Nantex Industry
Can any of the company-specific risk be diversified away by investing in both Shuang Bang and Nantex Industry at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shuang Bang and Nantex Industry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shuang Bang Industrial and Nantex Industry Co, you can compare the effects of market volatilities on Shuang Bang and Nantex Industry 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 Shuang Bang with a short position of Nantex Industry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuang Bang and Nantex Industry.
Diversification Opportunities for Shuang Bang and Nantex Industry
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shuang and Nantex is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Shuang Bang Industrial and Nantex Industry Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantex Industry and Shuang Bang 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 Shuang Bang Industrial are associated (or correlated) with Nantex Industry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantex Industry has no effect on the direction of Shuang Bang i.e., Shuang Bang and Nantex Industry go up and down completely randomly.
Pair Corralation between Shuang Bang and Nantex Industry
Assuming the 90 days trading horizon Shuang Bang Industrial is expected to generate 0.93 times more return on investment than Nantex Industry. However, Shuang Bang Industrial is 1.07 times less risky than Nantex Industry. It trades about 0.0 of its potential returns per unit of risk. Nantex Industry Co is currently generating about -0.01 per unit of risk. If you would invest 1,835 in Shuang Bang Industrial on September 2, 2024 and sell it today you would lose (70.00) from holding Shuang Bang Industrial or give up 3.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuang Bang Industrial vs. Nantex Industry Co
Performance |
| Timeline |
| Shuang Bang Industrial |
| Nantex Industry |
Shuang Bang and Nantex Industry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuang Bang and Nantex Industry
The main advantage of trading using opposite Shuang Bang and Nantex Industry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuang Bang position performs unexpectedly, Nantex Industry 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 Nantex Industry will offset losses from the drop in Nantex Industry's long position.| Shuang Bang vs. Delta Electronics | Shuang Bang vs. China Steel Chemical | Shuang Bang vs. Hota Industrial Mfg |
| Nantex Industry vs. International CSRC Investment | Nantex Industry vs. TSRC Corp | Nantex Industry vs. Ruentex Industries | Nantex Industry vs. Cheng Shin Rubber |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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