Correlation Between Hengli Industrial and Ningbo Kangqiang
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By analyzing existing cross correlation between Hengli Industrial Development and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Hengli Industrial and Ningbo Kangqiang 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 Hengli Industrial with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Ningbo Kangqiang.
Diversification Opportunities for Hengli Industrial and Ningbo Kangqiang
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hengli and Ningbo is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Hengli Industrial and Ningbo Kangqiang
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 0.57 times more return on investment than Ningbo Kangqiang. However, Hengli Industrial Development is 1.75 times less risky than Ningbo Kangqiang. It trades about 0.2 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.1 per unit of risk. If you would invest 211.00 in Hengli Industrial Development on November 5, 2024 and sell it today you would earn a total of 19.00 from holding Hengli Industrial Development or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Hengli Industrial |
| Ningbo Kangqiang Ele |
Hengli Industrial and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Ningbo Kangqiang
The main advantage of trading using opposite Hengli Industrial and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Hengli Industrial vs. Hainan Haiqi Transportation | Hengli Industrial vs. Guangdong Silvere Sci | Hengli Industrial vs. Shuhua Sports Co | Hengli Industrial vs. Fujian Oriental Silver |
| Ningbo Kangqiang vs. Nanjing Putian Telecommunications | Ningbo Kangqiang vs. Cloud Live Technology | Ningbo Kangqiang vs. Shenzhen Coship Electronics | Ningbo Kangqiang vs. Shenzhen Hifuture Electric |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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