Correlation Between National Silicon and PharmaResources
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By analyzing existing cross correlation between National Silicon Industry and PharmaResources Co Ltd, you can compare the effects of market volatilities on National Silicon and PharmaResources 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 National Silicon with a short position of PharmaResources. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Silicon and PharmaResources.
Diversification Opportunities for National Silicon and PharmaResources
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between National and PharmaResources is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding National Silicon Industry and PharmaResources Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PharmaResources and National Silicon 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 National Silicon Industry are associated (or correlated) with PharmaResources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PharmaResources has no effect on the direction of National Silicon i.e., National Silicon and PharmaResources go up and down completely randomly.
Pair Corralation between National Silicon and PharmaResources
Assuming the 90 days trading horizon National Silicon is expected to generate 2.25 times less return on investment than PharmaResources. But when comparing it to its historical volatility, National Silicon Industry is 1.53 times less risky than PharmaResources. It trades about 0.01 of its potential returns per unit of risk. PharmaResources Co Ltd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,907 in PharmaResources Co Ltd on September 19, 2024 and sell it today you would lose (207.00) from holding PharmaResources Co Ltd or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
National Silicon Industry vs. PharmaResources Co Ltd
Performance |
| Timeline |
| National Silicon Industry |
| PharmaResources |
National Silicon and PharmaResources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Silicon and PharmaResources
The main advantage of trading using opposite National Silicon and PharmaResources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Silicon position performs unexpectedly, PharmaResources 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 PharmaResources will offset losses from the drop in PharmaResources' long position.| National Silicon vs. Holitech Technology Co | National Silicon vs. Chongqing Brewery Co | National Silicon vs. Spring Airlines Co | National Silicon vs. Guangzhou Zhujiang Brewery |
| PharmaResources vs. Industrial and Commercial | PharmaResources vs. China Construction Bank | PharmaResources vs. Bank of China | PharmaResources vs. Agricultural Bank of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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