Correlation Between Nanjing Vishee and Western Metal
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By analyzing existing cross correlation between Nanjing Vishee Medical and Western Metal Materials, you can compare the effects of market volatilities on Nanjing Vishee and Western Metal 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 Nanjing Vishee with a short position of Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Vishee and Western Metal.
Diversification Opportunities for Nanjing Vishee and Western Metal
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanjing and Western is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Vishee Medical and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials and Nanjing Vishee 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 Nanjing Vishee Medical are associated (or correlated) with Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Nanjing Vishee i.e., Nanjing Vishee and Western Metal go up and down completely randomly.
Pair Corralation between Nanjing Vishee and Western Metal
Assuming the 90 days trading horizon Nanjing Vishee Medical is expected to under-perform the Western Metal. In addition to that, Nanjing Vishee is 1.37 times more volatile than Western Metal Materials. It trades about -0.05 of its total potential returns per unit of risk. Western Metal Materials is currently generating about 0.02 per unit of volatility. If you would invest 1,548 in Western Metal Materials on October 12, 2024 and sell it today you would earn a total of 167.00 from holding Western Metal Materials or generate 10.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Vishee Medical vs. Western Metal Materials
Performance |
| Timeline |
| Nanjing Vishee Medical |
| Western Metal Materials |
Nanjing Vishee and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Vishee and Western Metal
The main advantage of trading using opposite Nanjing Vishee and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Vishee position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Nanjing Vishee vs. Longxing Chemical Stock | Nanjing Vishee vs. Maoming Petro Chemical Shihua | Nanjing Vishee vs. Jinsanjiang Silicon Material | Nanjing Vishee vs. Guizhou Chanhen Chemical |
| Western Metal vs. Xiandai Investment Co | Western Metal vs. Jiangsu Yueda Investment | Western Metal vs. Hunan Investment Group | Western Metal vs. Nanjing Vishee Medical |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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