Correlation Between Emdoor Information and Ningbo Construction
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By analyzing existing cross correlation between Emdoor Information Co and Ningbo Construction Co, you can compare the effects of market volatilities on Emdoor Information 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 Emdoor Information with a short position of Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Ningbo Construction.
Diversification Opportunities for Emdoor Information and Ningbo Construction
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Emdoor and Ningbo is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction and Emdoor Information 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 Emdoor Information Co 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 Emdoor Information i.e., Emdoor Information and Ningbo Construction go up and down completely randomly.
Pair Corralation between Emdoor Information and Ningbo Construction
Assuming the 90 days trading horizon Emdoor Information is expected to generate 1.49 times less return on investment than Ningbo Construction. But when comparing it to its historical volatility, Emdoor Information Co is 1.62 times less risky than Ningbo Construction. It trades about 0.21 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Ningbo Construction Co on August 27, 2024 and sell it today you would earn a total of 71.00 from holding Ningbo Construction Co or generate 16.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emdoor Information Co vs. Ningbo Construction Co
Performance |
| Timeline |
| Emdoor Information |
| Ningbo Construction |
Emdoor Information and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and Ningbo Construction
The main advantage of trading using opposite Emdoor Information and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information 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.| Emdoor Information vs. Vanfund Urban Investment | Emdoor Information vs. Harbin Hatou Investment | Emdoor Information vs. Zhongrun Resources Investment | Emdoor Information vs. Beijing Mainstreets Investment |
| Ningbo Construction vs. Songz Automobile Air | Ningbo Construction vs. Guangzhou Haige Communications | Ningbo Construction vs. HaiXin Foods Co | Ningbo Construction vs. New Hope Dairy |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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