Correlation Between GRIPM Advanced and Nantong Haixing
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By analyzing existing cross correlation between GRIPM Advanced Materials and Nantong Haixing Electronics, you can compare the effects of market volatilities on GRIPM Advanced and Nantong Haixing 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 GRIPM Advanced with a short position of Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and Nantong Haixing.
Diversification Opportunities for GRIPM Advanced and Nantong Haixing
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GRIPM and Nantong is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec and GRIPM Advanced 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 GRIPM Advanced Materials are associated (or correlated) with Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of GRIPM Advanced i.e., GRIPM Advanced and Nantong Haixing go up and down completely randomly.
Pair Corralation between GRIPM Advanced and Nantong Haixing
Assuming the 90 days trading horizon GRIPM Advanced Materials is expected to generate 1.34 times more return on investment than Nantong Haixing. However, GRIPM Advanced is 1.34 times more volatile than Nantong Haixing Electronics. It trades about 0.02 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.05 per unit of risk. If you would invest 3,280 in GRIPM Advanced Materials on October 30, 2024 and sell it today you would earn a total of 22.00 from holding GRIPM Advanced Materials or generate 0.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIPM Advanced Materials vs. Nantong Haixing Electronics
Performance |
| Timeline |
| GRIPM Advanced Materials |
| Nantong Haixing Elec |
GRIPM Advanced and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIPM Advanced and Nantong Haixing
The main advantage of trading using opposite GRIPM Advanced and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| GRIPM Advanced vs. Zijin Mining Group | GRIPM Advanced vs. Wanhua Chemical Group | GRIPM Advanced vs. Baoshan Iron Steel | GRIPM Advanced vs. Shandong Gold Mining |
| Nantong Haixing vs. Shandong Rike Chemical | Nantong Haixing vs. Zhongshan Broad Ocean Motor | Nantong Haixing vs. Liuzhou Chemical Industry | Nantong Haixing vs. Jiangsu Financial Leasing |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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