Correlation Between Ningbo Kangqiang and Ingenic Semiconductor
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By analyzing existing cross correlation between Ningbo Kangqiang Electronics and Ingenic Semiconductor, you can compare the effects of market volatilities on Ningbo Kangqiang and Ingenic Semiconductor 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 Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Kangqiang and Ingenic Semiconductor.
Diversification Opportunities for Ningbo Kangqiang and Ingenic Semiconductor
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Ingenic is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Kangqiang Electronics and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor 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 Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Ningbo Kangqiang i.e., Ningbo Kangqiang and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Ningbo Kangqiang and Ingenic Semiconductor
Assuming the 90 days trading horizon Ningbo Kangqiang Electronics is expected to generate 0.97 times more return on investment than Ingenic Semiconductor. However, Ningbo Kangqiang Electronics is 1.03 times less risky than Ingenic Semiconductor. It trades about 0.04 of its potential returns per unit of risk. Ingenic Semiconductor is currently generating about 0.01 per unit of risk. If you would invest 1,284 in Ningbo Kangqiang Electronics on October 26, 2024 and sell it today you would earn a total of 481.00 from holding Ningbo Kangqiang Electronics or generate 37.46% 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. Ingenic Semiconductor
Performance |
| Timeline |
| Ningbo Kangqiang Ele |
| Ingenic Semiconductor |
Ningbo Kangqiang and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Kangqiang and Ingenic Semiconductor
The main advantage of trading using opposite Ningbo Kangqiang and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Kangqiang position performs unexpectedly, Ingenic Semiconductor 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.| Ningbo Kangqiang vs. Tongding Interconnection Information | Ningbo Kangqiang vs. East Money Information | Ningbo Kangqiang vs. Chahua Modern Housewares | Ningbo Kangqiang vs. Marssenger Kitchenware 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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