Correlation Between Jiangsu Yanghe and Hunan Nanling
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Hunan Nanling Industrial, you can compare the effects of market volatilities on Jiangsu Yanghe and Hunan Nanling 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 Jiangsu Yanghe with a short position of Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Hunan Nanling.
Diversification Opportunities for Jiangsu Yanghe and Hunan Nanling
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Hunan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery are associated (or correlated) with Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Hunan Nanling go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Hunan Nanling
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.67 times more return on investment than Hunan Nanling. However, Jiangsu Yanghe Brewery is 1.49 times less risky than Hunan Nanling. It trades about -0.17 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about -0.5 per unit of risk. If you would invest 8,340 in Jiangsu Yanghe Brewery on October 23, 2024 and sell it today you would lose (305.00) from holding Jiangsu Yanghe Brewery or give up 3.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Hunan Nanling Industrial
Performance |
Timeline |
Jiangsu Yanghe Brewery |
Hunan Nanling Industrial |
Jiangsu Yanghe and Hunan Nanling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Yanghe and Hunan Nanling
The main advantage of trading using opposite Jiangsu Yanghe and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Hunan Nanling 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 Hunan Nanling will offset losses from the drop in Hunan Nanling's long position.Jiangsu Yanghe vs. Chongqing Changan Automobile | Jiangsu Yanghe vs. Keeson Technology Corp | Jiangsu Yanghe vs. Zhongshan Public Utilities | Jiangsu Yanghe vs. Ping An Insurance |
Hunan Nanling vs. Olympic Circuit Technology | Hunan Nanling vs. Dhc Software Co | Hunan Nanling vs. Nanxing Furniture Machinery | Hunan Nanling vs. Keeson Technology Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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