Correlation Between Ningbo Kangqiang and ButOne Information
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By analyzing existing cross correlation between Ningbo Kangqiang Electronics and ButOne Information Corp, you can compare the effects of market volatilities on Ningbo Kangqiang and ButOne Information 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 ButOne Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Kangqiang and ButOne Information.
Diversification Opportunities for Ningbo Kangqiang and ButOne Information
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and ButOne is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Kangqiang Electronics and ButOne Information Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ButOne Information Corp 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 ButOne Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ButOne Information Corp has no effect on the direction of Ningbo Kangqiang i.e., Ningbo Kangqiang and ButOne Information go up and down completely randomly.
Pair Corralation between Ningbo Kangqiang and ButOne Information
Assuming the 90 days trading horizon Ningbo Kangqiang Electronics is expected to generate 1.06 times more return on investment than ButOne Information. However, Ningbo Kangqiang is 1.06 times more volatile than ButOne Information Corp. It trades about 0.03 of its potential returns per unit of risk. ButOne Information Corp is currently generating about 0.02 per unit of risk. If you would invest 1,301 in Ningbo Kangqiang Electronics on September 12, 2024 and sell it today you would earn a total of 205.00 from holding Ningbo Kangqiang Electronics or generate 15.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ningbo Kangqiang Electronics vs. ButOne Information Corp
Performance |
| Timeline |
| Ningbo Kangqiang Ele |
| ButOne Information Corp |
Ningbo Kangqiang and ButOne Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Kangqiang and ButOne Information
The main advantage of trading using opposite Ningbo Kangqiang and ButOne Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Kangqiang position performs unexpectedly, ButOne Information 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 ButOne Information will offset losses from the drop in ButOne Information's long position.| Ningbo Kangqiang vs. Guangdong Brandmax Marketing | Ningbo Kangqiang vs. Gansu Huangtai Wine marketing | Ningbo Kangqiang vs. Sinocat Environmental Technology | Ningbo Kangqiang vs. Duzhe Publishing Media |
| ButOne Information vs. Lutian Machinery Co | ButOne Information vs. PetroChina Co Ltd | ButOne Information vs. Bank of China | ButOne Information vs. Gansu Jiu Steel |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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