Correlation Between Green World and Nan Ya
Can any of the company-specific risk be diversified away by investing in both Green World and Nan Ya 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 Green World and Nan Ya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and Nan Ya Printed, you can compare the effects of market volatilities on Green World and Nan Ya 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 Green World with a short position of Nan Ya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and Nan Ya.
Diversification Opportunities for Green World and Nan Ya
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Green and Nan is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech and Nan Ya Printed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nan Ya Printed and Green World 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 Green World Fintech are associated (or correlated) with Nan Ya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nan Ya Printed has no effect on the direction of Green World i.e., Green World and Nan Ya go up and down completely randomly.
Pair Corralation between Green World and Nan Ya
Assuming the 90 days trading horizon Green World Fintech is expected to under-perform the Nan Ya. In addition to that, Green World is 1.51 times more volatile than Nan Ya Printed. It trades about -0.21 of its total potential returns per unit of risk. Nan Ya Printed is currently generating about -0.22 per unit of volatility. If you would invest 14,050 in Nan Ya Printed on September 23, 2024 and sell it today you would lose (2,950) from holding Nan Ya Printed or give up 21.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Green World Fintech vs. Nan Ya Printed
Performance |
Timeline |
Green World Fintech |
Nan Ya Printed |
Green World and Nan Ya Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Green World and Nan Ya
The main advantage of trading using opposite Green World and Nan Ya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World position performs unexpectedly, Nan Ya 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 Nan Ya will offset losses from the drop in Nan Ya's long position.Green World vs. Digital China Holdings | Green World vs. Acer E Enabling Service | Green World vs. Sysage Technology Co | Green World vs. Wistron Information Technology |
Nan Ya vs. Century Wind Power | Nan Ya vs. Green World Fintech | Nan Ya vs. Ingentec | Nan Ya vs. Chaheng Precision Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |