Correlation Between Nanjing Vishee and Jiangxi Hengda
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By analyzing existing cross correlation between Nanjing Vishee Medical and Jiangxi Hengda Hi Tech, you can compare the effects of market volatilities on Nanjing Vishee and Jiangxi Hengda 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 Jiangxi Hengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Vishee and Jiangxi Hengda.
Diversification Opportunities for Nanjing Vishee and Jiangxi Hengda
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Jiangxi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Vishee Medical and Jiangxi Hengda Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Hengda Hi 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 Jiangxi Hengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Hengda Hi has no effect on the direction of Nanjing Vishee i.e., Nanjing Vishee and Jiangxi Hengda go up and down completely randomly.
Pair Corralation between Nanjing Vishee and Jiangxi Hengda
Assuming the 90 days trading horizon Nanjing Vishee Medical is expected to generate 0.74 times more return on investment than Jiangxi Hengda. However, Nanjing Vishee Medical is 1.34 times less risky than Jiangxi Hengda. It trades about -0.16 of its potential returns per unit of risk. Jiangxi Hengda Hi Tech is currently generating about -0.17 per unit of risk. If you would invest 3,113 in Nanjing Vishee Medical on October 11, 2024 and sell it today you would lose (376.00) from holding Nanjing Vishee Medical or give up 12.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Vishee Medical vs. Jiangxi Hengda Hi Tech
Performance |
| Timeline |
| Nanjing Vishee Medical |
| Jiangxi Hengda Hi |
Nanjing Vishee and Jiangxi Hengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Vishee and Jiangxi Hengda
The main advantage of trading using opposite Nanjing Vishee and Jiangxi Hengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Vishee position performs unexpectedly, Jiangxi Hengda 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 Jiangxi Hengda will offset losses from the drop in Jiangxi Hengda's long position.| Nanjing Vishee vs. Holitech Technology Co | Nanjing Vishee vs. Zotye Automobile Co | Nanjing Vishee vs. Bus Online Co | Nanjing Vishee vs. Cultural Investment Holdings |
| Jiangxi Hengda vs. Nanjing Vishee Medical | Jiangxi Hengda vs. Xiangyu Medical Co | Jiangxi Hengda vs. Shanghai Sanyou Medical | Jiangxi Hengda vs. Medprin Regenerative 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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