Correlation Between Nanya New and Shenyang Blue
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanya New Material and Shenyang Blue Silver, you can compare the effects of market volatilities on Nanya New and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanya New and Shenyang Blue.
Diversification Opportunities for Nanya New and Shenyang Blue
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanya and Shenyang is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Nanya New Material and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Nanya New i.e., Nanya New and Shenyang Blue go up and down completely randomly.
Pair Corralation between Nanya New and Shenyang Blue
Assuming the 90 days trading horizon Nanya New Material is expected to generate 1.44 times more return on investment than Shenyang Blue. However, Nanya New is 1.44 times more volatile than Shenyang Blue Silver. It trades about 0.19 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about 0.06 per unit of risk. If you would invest 1,966 in Nanya New Material on November 8, 2024 and sell it today you would earn a total of 190.00 from holding Nanya New Material or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanya New Material vs. Shenyang Blue Silver
Performance |
| Timeline |
| Nanya New Material |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shenyang Blue Silver |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nanya New and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanya New and Shenyang Blue
The main advantage of trading using opposite Nanya New and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanya New position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.The idea behind Nanya New Material and Shenyang Blue Silver pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |