Correlation Between Hengli Industrial and Ningbo Fujia
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By analyzing existing cross correlation between Hengli Industrial Development and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Hengli Industrial and Ningbo Fujia 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 Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Ningbo Fujia.
Diversification Opportunities for Hengli Industrial and Ningbo Fujia
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hengli and Ningbo is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia Industrial 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 Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Hengli Industrial and Ningbo Fujia
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Ningbo Fujia. In addition to that, Hengli Industrial is 1.16 times more volatile than Ningbo Fujia Industrial. It trades about -0.03 of its total potential returns per unit of risk. Ningbo Fujia Industrial is currently generating about 0.03 per unit of volatility. If you would invest 1,372 in Ningbo Fujia Industrial on October 12, 2024 and sell it today you would earn a total of 76.00 from holding Ningbo Fujia Industrial or generate 5.54% 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 Fujia Industrial
Performance |
| Timeline |
| Hengli Industrial |
| Ningbo Fujia Industrial |
Hengli Industrial and Ningbo Fujia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Ningbo Fujia
The main advantage of trading using opposite Hengli Industrial and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Ningbo Fujia 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 Fujia will offset losses from the drop in Ningbo Fujia's long position.| Hengli Industrial vs. Tsingtao Brewery Co | Hengli Industrial vs. Dawning Information Industry | Hengli Industrial vs. Wuhan Yangtze Communication | Hengli Industrial vs. Unisplendour Corp |
| Ningbo Fujia vs. Hubeiyichang Transportation Group | Ningbo Fujia vs. Fujian Longzhou Transportation | Ningbo Fujia vs. China Minmetals Rare | Ningbo Fujia vs. Hengli Industrial Development |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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