Correlation Between Astar and Nanning Chemical
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By analyzing existing cross correlation between Astar and Nanning Chemical Industry, you can compare the effects of market volatilities on Astar 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 Astar with a short position of Nanning Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Nanning Chemical.
Diversification Opportunities for Astar and Nanning Chemical
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Astar and Nanning is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Astar 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 Astar 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 Astar 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 Astar i.e., Astar and Nanning Chemical go up and down completely randomly.
Pair Corralation between Astar and Nanning Chemical
Assuming the 90 days trading horizon Astar is expected to under-perform the Nanning Chemical. In addition to that, Astar is 3.06 times more volatile than Nanning Chemical Industry. It trades about -0.18 of its total potential returns per unit of risk. Nanning Chemical Industry is currently generating about -0.31 per unit of volatility. If you would invest 1,925 in Nanning Chemical Industry on October 12, 2024 and sell it today you would lose (209.00) from holding Nanning Chemical Industry or give up 10.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astar vs. Nanning Chemical Industry
Performance |
| Timeline |
| Astar |
| Nanning Chemical Industry |
Astar and Nanning Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Nanning Chemical
The main advantage of trading using opposite Astar and Nanning Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar 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.The idea behind Astar and Nanning Chemical Industry pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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