Correlation Between China Galaxy and NSAV Holding
Can any of the company-specific risk be diversified away by investing in both China Galaxy and NSAV Holding at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Galaxy and NSAV Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Galaxy Securities and NSAV Holding, you can compare the effects of market volatilities on China Galaxy and NSAV Holding 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 China Galaxy with a short position of NSAV Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Galaxy and NSAV Holding.
Diversification Opportunities for China Galaxy and NSAV Holding
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and NSAV is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding China Galaxy Securities and NSAV Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSAV Holding and China Galaxy 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 China Galaxy Securities are associated (or correlated) with NSAV Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSAV Holding has no effect on the direction of China Galaxy i.e., China Galaxy and NSAV Holding go up and down completely randomly.
Pair Corralation between China Galaxy and NSAV Holding
If you would invest 0.20 in NSAV Holding on August 29, 2024 and sell it today you would lose (0.13) from holding NSAV Holding or give up 65.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
China Galaxy Securities vs. NSAV Holding
Performance |
| Timeline |
| China Galaxy Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NSAV Holding |
China Galaxy and NSAV Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Galaxy and NSAV Holding
The main advantage of trading using opposite China Galaxy and NSAV Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Galaxy position performs unexpectedly, NSAV Holding 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 NSAV Holding will offset losses from the drop in NSAV Holding's long position.| China Galaxy vs. Evercore Partners | China Galaxy vs. Lazard | China Galaxy vs. Moelis Co | China Galaxy vs. PJT Partners |
| NSAV Holding vs. GiveMePower Corp | NSAV Holding vs. Axis Technologies Group | NSAV Holding vs. Vortex Brands Co | NSAV Holding vs. Sysorex |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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