Correlation Between Xiandai Investment and Ningbo Fangzheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xiandai Investment Co and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Xiandai Investment and Ningbo Fangzheng 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 Xiandai Investment with a short position of Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Ningbo Fangzheng.
Diversification Opportunities for Xiandai Investment and Ningbo Fangzheng
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiandai and Ningbo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut and Xiandai Investment 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 Xiandai Investment Co are associated (or correlated) with Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Xiandai Investment i.e., Xiandai Investment and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Xiandai Investment and Ningbo Fangzheng
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.68 times more return on investment than Ningbo Fangzheng. However, Xiandai Investment Co is 1.47 times less risky than Ningbo Fangzheng. It trades about 0.01 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.02 per unit of risk. If you would invest 416.00 in Xiandai Investment Co on October 26, 2024 and sell it today you would earn a total of 2.00 from holding Xiandai Investment Co or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Xiandai Investment |
| Ningbo Fangzheng Aut |
Xiandai Investment and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Ningbo Fangzheng
The main advantage of trading using opposite Xiandai Investment and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment position performs unexpectedly, Ningbo Fangzheng 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 Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Xiandai Investment vs. PetroChina Co Ltd | Xiandai Investment vs. China Mobile Limited | Xiandai Investment vs. CNOOC Limited | Xiandai Investment vs. Ping An Insurance |
| Ningbo Fangzheng vs. Zoje Resources Investment | Ningbo Fangzheng vs. Emdoor Information Co | Ningbo Fangzheng vs. Zhejiang Construction Investment | Ningbo Fangzheng vs. Xiandai Investment Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |