Correlation Between Ningbo Kangqiang and Shenzhen Clou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Kangqiang Electronics and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Ningbo Kangqiang and Shenzhen Clou 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 Ningbo Kangqiang with a short position of Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Kangqiang and Shenzhen Clou.
Diversification Opportunities for Ningbo Kangqiang and Shenzhen Clou
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Shenzhen is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Kangqiang Electronics and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics and Ningbo Kangqiang 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 Ningbo Kangqiang Electronics are associated (or correlated) with Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Ningbo Kangqiang i.e., Ningbo Kangqiang and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Ningbo Kangqiang and Shenzhen Clou
Assuming the 90 days trading horizon Ningbo Kangqiang Electronics is expected to generate 2.66 times more return on investment than Shenzhen Clou. However, Ningbo Kangqiang is 2.66 times more volatile than Shenzhen Clou Electronics. It trades about 0.13 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about -0.2 per unit of risk. If you would invest 1,548 in Ningbo Kangqiang Electronics on November 1, 2024 and sell it today you would earn a total of 165.00 from holding Ningbo Kangqiang Electronics or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Kangqiang Electronics vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Ningbo Kangqiang Ele |
| Shenzhen Clou Electronics |
Ningbo Kangqiang and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Kangqiang and Shenzhen Clou
The main advantage of trading using opposite Ningbo Kangqiang and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Kangqiang position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| Ningbo Kangqiang vs. Cloud Live Technology | Ningbo Kangqiang vs. Nanjing Putian Telecommunications | Ningbo Kangqiang vs. Shenzhen Coship Electronics | Ningbo Kangqiang vs. Shenzhen Hifuture Electric |
| Shenzhen Clou vs. Longjian Road Bridge | Shenzhen Clou vs. Fiberhome Telecommunication Technologies | Shenzhen Clou vs. Railway Signal Communication | Shenzhen Clou vs. Bank of Communications |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |