Correlation Between Shandong Ruifeng and Hunan Nanling
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and Hunan Nanling Industrial, you can compare the effects of market volatilities on Shandong Ruifeng 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 Shandong Ruifeng with a short position of Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and Hunan Nanling.
Diversification Opportunities for Shandong Ruifeng and Hunan Nanling
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shandong and Hunan is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng Chemical 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 Shandong Ruifeng 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 Shandong Ruifeng Chemical 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 Shandong Ruifeng i.e., Shandong Ruifeng and Hunan Nanling go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and Hunan Nanling
Assuming the 90 days trading horizon Shandong Ruifeng Chemical is expected to generate 0.81 times more return on investment than Hunan Nanling. However, Shandong Ruifeng Chemical is 1.24 times less risky than Hunan Nanling. It trades about -0.02 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about -0.02 per unit of risk. If you would invest 1,116 in Shandong Ruifeng Chemical on July 19, 2025 and sell it today you would lose (49.00) from holding Shandong Ruifeng Chemical or give up 4.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
Shandong Ruifeng Chemical vs. Hunan Nanling Industrial
Performance |
| Timeline |
| Shandong Ruifeng Chemical |
| Hunan Nanling Industrial |
Shandong Ruifeng and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Ruifeng and Hunan Nanling
The main advantage of trading using opposite Shandong Ruifeng and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng 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.| Shandong Ruifeng vs. Oriental Times Media | Shandong Ruifeng vs. Shenzhen Silver Basis | Shandong Ruifeng vs. Dalian Zeus Entertainment | Shandong Ruifeng vs. Shenzhen AV Display Co |
| Hunan Nanling vs. Chahua Modern Housewares | Hunan Nanling vs. Yindu Kitchen Equipment | Hunan Nanling vs. Zoy Home Furnishing | Hunan Nanling vs. Ziel Home Furnishing |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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