Correlation Between Zhongtong Guomai and Hunan Nanling
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Hunan Nanling Industrial, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Hunan Nanling.
Diversification Opportunities for Zhongtong Guomai and Hunan Nanling
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongtong and Hunan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Hunan Nanling go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Hunan Nanling
Assuming the 90 days trading horizon Zhongtong Guomai is expected to generate 1.45 times less return on investment than Hunan Nanling. In addition to that, Zhongtong Guomai is 1.8 times more volatile than Hunan Nanling Industrial. It trades about 0.06 of its total potential returns per unit of risk. Hunan Nanling Industrial is currently generating about 0.16 per unit of volatility. If you would invest 1,079 in Hunan Nanling Industrial on December 11, 2024 and sell it today you would earn a total of 94.00 from holding Hunan Nanling Industrial or generate 8.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongtong Guomai Communication vs. Hunan Nanling Industrial
Performance |
Timeline |
Zhongtong Guomai Com |
Hunan Nanling Industrial |
Zhongtong Guomai and Hunan Nanling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongtong Guomai and Hunan Nanling
The main advantage of trading using opposite Zhongtong Guomai and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.Zhongtong Guomai vs. Keli Sensing Technology | Zhongtong Guomai vs. Kidswant Children Products | Zhongtong Guomai vs. RoadMain T Co | Zhongtong Guomai vs. Xinjiang Beixin RoadBridge |
Hunan Nanling vs. Der International Home | Hunan Nanling vs. Zhejiang Daily Media | Hunan Nanling vs. Vohringer Home Technology | Hunan Nanling vs. A Zenith Home Furnishings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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