Correlation Between Nanjing Vishee and Shanghai CEO
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By analyzing existing cross correlation between Nanjing Vishee Medical and Shanghai CEO Environmental, you can compare the effects of market volatilities on Nanjing Vishee and Shanghai CEO 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 Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Vishee and Shanghai CEO.
Diversification Opportunities for Nanjing Vishee and Shanghai CEO
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanjing and Shanghai is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Vishee Medical and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of Nanjing Vishee i.e., Nanjing Vishee and Shanghai CEO go up and down completely randomly.
Pair Corralation between Nanjing Vishee and Shanghai CEO
Assuming the 90 days trading horizon Nanjing Vishee Medical is expected to under-perform the Shanghai CEO. In addition to that, Nanjing Vishee is 1.23 times more volatile than Shanghai CEO Environmental. It trades about -0.06 of its total potential returns per unit of risk. Shanghai CEO Environmental is currently generating about -0.04 per unit of volatility. If you would invest 1,380 in Shanghai CEO Environmental on October 11, 2024 and sell it today you would lose (555.00) from holding Shanghai CEO Environmental or give up 40.22% 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. Shanghai CEO Environmental
Performance |
| Timeline |
| Nanjing Vishee Medical |
| Shanghai CEO Environ |
Nanjing Vishee and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Vishee and Shanghai CEO
The main advantage of trading using opposite Nanjing Vishee and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Vishee position performs unexpectedly, Shanghai CEO 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 Shanghai CEO will offset losses from the drop in Shanghai CEO's long position.| Nanjing Vishee vs. Tengda Construction Group | Nanjing Vishee vs. Sinomach General Machinery | Nanjing Vishee vs. Guangdong Silvere Sci | Nanjing Vishee vs. Zijin Mining Group |
| Shanghai CEO vs. China Life Insurance | Shanghai CEO vs. Beijing Jiaman Dress | Shanghai CEO vs. Western Metal Materials | Shanghai CEO vs. Beijing HuaYuanYiTong Thermal |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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