Correlation Between NAYA Biosciences, and China Mengniu
Can any of the company-specific risk be diversified away by investing in both NAYA Biosciences, and China Mengniu 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 NAYA Biosciences, and China Mengniu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAYA Biosciences, and China Mengniu Dairy, you can compare the effects of market volatilities on NAYA Biosciences, and China Mengniu 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 NAYA Biosciences, with a short position of China Mengniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAYA Biosciences, and China Mengniu.
Diversification Opportunities for NAYA Biosciences, and China Mengniu
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between NAYA and China is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding NAYA Biosciences, and China Mengniu Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mengniu Dairy and NAYA Biosciences, 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 NAYA Biosciences, are associated (or correlated) with China Mengniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mengniu Dairy has no effect on the direction of NAYA Biosciences, i.e., NAYA Biosciences, and China Mengniu go up and down completely randomly.
Pair Corralation between NAYA Biosciences, and China Mengniu
Given the investment horizon of 90 days NAYA Biosciences, is expected to generate 3.39 times more return on investment than China Mengniu. However, NAYA Biosciences, is 3.39 times more volatile than China Mengniu Dairy. It trades about 0.03 of its potential returns per unit of risk. China Mengniu Dairy is currently generating about -0.01 per unit of risk. If you would invest 149.00 in NAYA Biosciences, on September 2, 2024 and sell it today you would lose (51.00) from holding NAYA Biosciences, or give up 34.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAYA Biosciences, vs. China Mengniu Dairy
Performance |
| Timeline |
| NAYA Biosciences, |
| China Mengniu Dairy |
NAYA Biosciences, and China Mengniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAYA Biosciences, and China Mengniu
The main advantage of trading using opposite NAYA Biosciences, and China Mengniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAYA Biosciences, position performs unexpectedly, China Mengniu 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 China Mengniu will offset losses from the drop in China Mengniu's long position.| NAYA Biosciences, vs. Pekin Life Insurance | NAYA Biosciences, vs. NETGEAR | NAYA Biosciences, vs. Evertz Technologies Limited | NAYA Biosciences, vs. Arrow Electronics |
| China Mengniu vs. The A2 Milk | China Mengniu vs. Artisan Consumer Goods | China Mengniu vs. General Mills |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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