Correlation Between Nanya New and Qingdao Choho
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By analyzing existing cross correlation between Nanya New Material and Qingdao Choho Industrial, you can compare the effects of market volatilities on Nanya New and Qingdao Choho 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 Nanya New with a short position of Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanya New and Qingdao Choho.
Diversification Opportunities for Nanya New and Qingdao Choho
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nanya and Qingdao is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Nanya New Material and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial and Nanya New 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 Nanya New Material are associated (or correlated) with Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Nanya New i.e., Nanya New and Qingdao Choho go up and down completely randomly.
Pair Corralation between Nanya New and Qingdao Choho
Assuming the 90 days trading horizon Nanya New is expected to generate 1.2 times less return on investment than Qingdao Choho. In addition to that, Nanya New is 1.04 times more volatile than Qingdao Choho Industrial. It trades about 0.32 of its total potential returns per unit of risk. Qingdao Choho Industrial is currently generating about 0.4 per unit of volatility. If you would invest 2,556 in Qingdao Choho Industrial on November 6, 2024 and sell it today you would earn a total of 533.00 from holding Qingdao Choho Industrial or generate 20.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanya New Material vs. Qingdao Choho Industrial
Performance |
| Timeline |
| Nanya New Material |
| Qingdao Choho Industrial |
Nanya New and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanya New and Qingdao Choho
The main advantage of trading using opposite Nanya New and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanya New position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| Nanya New vs. Fuda Alloy Materials | Nanya New vs. Guocheng Mining Co | Nanya New vs. Western Mining Co | Nanya New vs. NBTM New Materials |
| Qingdao Choho vs. GuoChuang Software Co | Qingdao Choho vs. China Everbright Bank | Qingdao Choho vs. Hua Xia Bank | Qingdao Choho vs. Glodon Software 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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