Correlation Between Nine Dragons and Gelsenwasser
Can any of the company-specific risk be diversified away by investing in both Nine Dragons and Gelsenwasser 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 Nine Dragons and Gelsenwasser into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nine Dragons Paper and Gelsenwasser AG, you can compare the effects of market volatilities on Nine Dragons and Gelsenwasser 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 Nine Dragons with a short position of Gelsenwasser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nine Dragons and Gelsenwasser.
Diversification Opportunities for Nine Dragons and Gelsenwasser
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nine and Gelsenwasser is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Nine Dragons Paper and Gelsenwasser AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gelsenwasser AG and Nine Dragons 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 Nine Dragons Paper are associated (or correlated) with Gelsenwasser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gelsenwasser AG has no effect on the direction of Nine Dragons i.e., Nine Dragons and Gelsenwasser go up and down completely randomly.
Pair Corralation between Nine Dragons and Gelsenwasser
Assuming the 90 days horizon Nine Dragons Paper is expected to generate 1.57 times more return on investment than Gelsenwasser. However, Nine Dragons is 1.57 times more volatile than Gelsenwasser AG. It trades about 0.0 of its potential returns per unit of risk. Gelsenwasser AG is currently generating about -0.02 per unit of risk. If you would invest 71.00 in Nine Dragons Paper on August 26, 2024 and sell it today you would lose (33.00) from holding Nine Dragons Paper or give up 46.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nine Dragons Paper vs. Gelsenwasser AG
Performance |
| Timeline |
| Nine Dragons Paper |
| Gelsenwasser AG |
Nine Dragons and Gelsenwasser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nine Dragons and Gelsenwasser
The main advantage of trading using opposite Nine Dragons and Gelsenwasser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nine Dragons position performs unexpectedly, Gelsenwasser 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 Gelsenwasser will offset losses from the drop in Gelsenwasser's long position.| Nine Dragons vs. CENTURIA OFFICE REIT | Nine Dragons vs. Platinum Investment Management | Nine Dragons vs. Cleanaway Waste Management | Nine Dragons vs. MAVEN WIRELESS SWEDEN |
| Gelsenwasser vs. Spirent Communications plc | Gelsenwasser vs. SLR Investment Corp | Gelsenwasser vs. Singapore Telecommunications Limited | Gelsenwasser vs. INTERSHOP Communications Aktiengesellschaft |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |