Correlation Between Gansu Huangtai and Ningbo Kangqiang
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Ningbo Kangqiang.
Diversification Opportunities for Gansu Huangtai and Ningbo Kangqiang
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Ningbo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing 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 Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Ningbo Kangqiang
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.14 times more return on investment than Ningbo Kangqiang. However, Gansu Huangtai is 1.14 times more volatile than Ningbo Kangqiang Electronics. It trades about 0.09 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about -0.05 per unit of risk. If you would invest 1,527 in Gansu Huangtai Wine marketing on September 13, 2024 and sell it today you would earn a total of 97.00 from holding Gansu Huangtai Wine marketing or generate 6.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Ningbo Kangqiang Ele |
Gansu Huangtai and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Ningbo Kangqiang
The main advantage of trading using opposite Gansu Huangtai and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Tianjin Capital Environmental | Gansu Huangtai vs. Hang Xiao Steel | Gansu Huangtai vs. Zhejiang Kingland Pipeline | Gansu Huangtai vs. Sinocat Environmental Technology |
| Ningbo Kangqiang vs. Nanjing Putian Telecommunications | Ningbo Kangqiang vs. Tianjin Realty Development | Ningbo Kangqiang vs. Kangyue Technology Co | 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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