Correlation Between Nanya New and Der International
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By analyzing existing cross correlation between Nanya New Material and Der International Home, you can compare the effects of market volatilities on Nanya New and Der International 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 Nanya New with a short position of Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanya New and Der International.
Diversification Opportunities for Nanya New and Der International
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nanya and Der is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nanya New Material and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home and Nanya 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 Nanya New Material are associated (or correlated) with Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Nanya New i.e., Nanya New and Der International go up and down completely randomly.
Pair Corralation between Nanya New and Der International
Assuming the 90 days trading horizon Nanya New Material is expected to under-perform the Der International. But the stock apears to be less risky and, when comparing its historical volatility, Nanya New Material is 1.93 times less risky than Der International. The stock trades about -0.22 of its potential returns per unit of risk. The Der International Home is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 462.00 in Der International Home on September 19, 2024 and sell it today you would earn a total of 84.00 from holding Der International Home or generate 18.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Nanya New Material vs. Der International Home
Performance |
Timeline |
Nanya New Material |
Der International Home |
Nanya New and Der International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nanya New and Der International
The main advantage of trading using opposite Nanya New and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanya New position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.Nanya New vs. Der International Home | Nanya New vs. Qumei Furniture Group | Nanya New vs. Zhongshan Broad Ocean Motor | Nanya New vs. Oppein Home Group |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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