Correlation Between NBTM New and Fujian Nanwang
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By analyzing existing cross correlation between NBTM New Materials and Fujian Nanwang Environment, you can compare the effects of market volatilities on NBTM New and Fujian Nanwang 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 NBTM New with a short position of Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBTM New and Fujian Nanwang.
Diversification Opportunities for NBTM New and Fujian Nanwang
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NBTM and Fujian is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding NBTM New Materials and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir and NBTM New 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 NBTM New Materials are associated (or correlated) with Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of NBTM New i.e., NBTM New and Fujian Nanwang go up and down completely randomly.
Pair Corralation between NBTM New and Fujian Nanwang
Assuming the 90 days trading horizon NBTM New is expected to generate 1.42 times less return on investment than Fujian Nanwang. In addition to that, NBTM New is 1.27 times more volatile than Fujian Nanwang Environment. It trades about 0.09 of its total potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.16 per unit of volatility. If you would invest 1,003 in Fujian Nanwang Environment on September 26, 2024 and sell it today you would earn a total of 272.00 from holding Fujian Nanwang Environment or generate 27.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
NBTM New Materials vs. Fujian Nanwang Environment
Performance |
Timeline |
NBTM New Materials |
Fujian Nanwang Envir |
NBTM New and Fujian Nanwang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NBTM New and Fujian Nanwang
The main advantage of trading using opposite NBTM New and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBTM New position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.NBTM New vs. Fujian Nanwang Environment | NBTM New vs. Shengda Mining Co | NBTM New vs. Eit Environmental Development | NBTM New vs. JCHX Mining Management |
Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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