Correlation Between Hengli Industrial and Ningbo Construction
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By analyzing existing cross correlation between Hengli Industrial Development and Ningbo Construction Co, you can compare the effects of market volatilities on Hengli Industrial and Ningbo Construction 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 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Ningbo Construction.
Diversification Opportunities for Hengli Industrial and Ningbo Construction
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hengli and Ningbo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Ningbo Construction go up and down completely randomly.
Pair Corralation between Hengli Industrial and Ningbo Construction
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Ningbo Construction. In addition to that, Hengli Industrial is 1.32 times more volatile than Ningbo Construction Co. It trades about -0.02 of its total potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.0 per unit of volatility. If you would invest 495.00 in Ningbo Construction Co on October 27, 2024 and sell it today you would lose (78.00) from holding Ningbo Construction Co or give up 15.76% of portfolio value 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 Construction Co
Performance |
| Timeline |
| Hengli Industrial |
| Ningbo Construction |
Hengli Industrial and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Ningbo Construction
The main advantage of trading using opposite Hengli Industrial and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Ningbo Construction 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 Construction will offset losses from the drop in Ningbo Construction's long position.| Hengli Industrial vs. Kweichow Moutai Co | Hengli Industrial vs. Jiangsu Pacific Quartz | Hengli Industrial vs. Shenzhen Transsion Holdings | Hengli Industrial vs. Beijing Roborock Technology |
| Ningbo Construction vs. Hainan Mining Co | Ningbo Construction vs. Innovative Medical Management | Ningbo Construction vs. Huaxia Fund Management | Ningbo Construction vs. Jiangxi Naipu Mining |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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