Correlation Between Nanjing Vishee and Shanxi Tond
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By analyzing existing cross correlation between Nanjing Vishee Medical and Shanxi Tond Chemical, you can compare the effects of market volatilities on Nanjing Vishee and Shanxi Tond 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 Shanxi Tond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Vishee and Shanxi Tond.
Diversification Opportunities for Nanjing Vishee and Shanxi Tond
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Shanxi is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Vishee Medical and Shanxi Tond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Tond Chemical 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 Shanxi Tond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Tond Chemical has no effect on the direction of Nanjing Vishee i.e., Nanjing Vishee and Shanxi Tond go up and down completely randomly.
Pair Corralation between Nanjing Vishee and Shanxi Tond
Assuming the 90 days trading horizon Nanjing Vishee Medical is expected to under-perform the Shanxi Tond. In addition to that, Nanjing Vishee is 1.5 times more volatile than Shanxi Tond Chemical. It trades about -0.03 of its total potential returns per unit of risk. Shanxi Tond Chemical is currently generating about -0.02 per unit of volatility. If you would invest 576.00 in Shanxi Tond Chemical on October 27, 2024 and sell it today you would lose (95.00) from holding Shanxi Tond Chemical or give up 16.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Nanjing Vishee Medical vs. Shanxi Tond Chemical
Performance |
| Timeline |
| Nanjing Vishee Medical |
| Shanxi Tond Chemical |
Nanjing Vishee and Shanxi Tond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Vishee and Shanxi Tond
The main advantage of trading using opposite Nanjing Vishee and Shanxi Tond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Vishee position performs unexpectedly, Shanxi Tond 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 Shanxi Tond will offset losses from the drop in Shanxi Tond's long position.| Nanjing Vishee vs. Agricultural Bank of | Nanjing Vishee vs. Industrial and Commercial | Nanjing Vishee vs. Bank of China | Nanjing Vishee vs. China Construction Bank |
| Shanxi Tond vs. Tangel Publishing | Shanxi Tond vs. Western Metal Materials | Shanxi Tond vs. Beijing Kaiwen Education | Shanxi Tond vs. Universal Scientific Industrial |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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