Correlation Between Shanghai Newtouch and Nanning Chemical
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By analyzing existing cross correlation between Shanghai Newtouch Software and Nanning Chemical Industry, you can compare the effects of market volatilities on Shanghai Newtouch and Nanning Chemical 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 Shanghai Newtouch with a short position of Nanning Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Newtouch and Nanning Chemical.
Diversification Opportunities for Shanghai Newtouch and Nanning Chemical
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Nanning is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Newtouch Software and Nanning Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanning Chemical Industry and Shanghai Newtouch 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 Shanghai Newtouch Software are associated (or correlated) with Nanning Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanning Chemical Industry has no effect on the direction of Shanghai Newtouch i.e., Shanghai Newtouch and Nanning Chemical go up and down completely randomly.
Pair Corralation between Shanghai Newtouch and Nanning Chemical
Assuming the 90 days trading horizon Shanghai Newtouch Software is expected to generate 2.41 times more return on investment than Nanning Chemical. However, Shanghai Newtouch is 2.41 times more volatile than Nanning Chemical Industry. It trades about -0.06 of its potential returns per unit of risk. Nanning Chemical Industry is currently generating about -0.19 per unit of risk. If you would invest 1,682 in Shanghai Newtouch Software on October 11, 2024 and sell it today you would lose (280.00) from holding Shanghai Newtouch Software or give up 16.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Newtouch Software vs. Nanning Chemical Industry
Performance |
| Timeline |
| Shanghai Newtouch |
| Nanning Chemical Industry |
Shanghai Newtouch and Nanning Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Newtouch and Nanning Chemical
The main advantage of trading using opposite Shanghai Newtouch and Nanning Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Newtouch position performs unexpectedly, Nanning Chemical 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 Nanning Chemical will offset losses from the drop in Nanning Chemical's long position.| Shanghai Newtouch vs. Unisplendour Corp | Shanghai Newtouch vs. Jiangxi Hengda Hi Tech | Shanghai Newtouch vs. Shanghai Shibei Hi Tech | Shanghai Newtouch vs. Maccura Biotechnology Co |
| Nanning Chemical vs. Chengdu Xinzhu RoadBridge | Nanning Chemical vs. Shanghai Newtouch Software | Nanning Chemical vs. Anhui Transport Consulting | Nanning Chemical vs. Hainan Haiqi Transportation |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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