Correlation Between Ningbo Kangqiang and China Citic
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By analyzing existing cross correlation between Ningbo Kangqiang Electronics and China Citic Bank, you can compare the effects of market volatilities on Ningbo Kangqiang and China Citic 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 China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Kangqiang and China Citic.
Diversification Opportunities for Ningbo Kangqiang and China Citic
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and China is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Kangqiang Electronics and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic Bank 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 China Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of Ningbo Kangqiang i.e., Ningbo Kangqiang and China Citic go up and down completely randomly.
Pair Corralation between Ningbo Kangqiang and China Citic
Assuming the 90 days trading horizon Ningbo Kangqiang Electronics is expected to generate 4.07 times more return on investment than China Citic. However, Ningbo Kangqiang is 4.07 times more volatile than China Citic Bank. It trades about 0.13 of its potential returns per unit of risk. China Citic Bank 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. China Citic Bank
Performance |
| Timeline |
| Ningbo Kangqiang Ele |
| China Citic Bank |
Ningbo Kangqiang and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Kangqiang and China Citic
The main advantage of trading using opposite Ningbo Kangqiang and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Kangqiang position performs unexpectedly, China Citic 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 China Citic will offset losses from the drop in China Citic'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 |
| China Citic vs. Jiangyin Jianghua Microelectronics | China Citic vs. Hubei Geoway Investment | China Citic vs. Ningbo Kangqiang Electronics | China Citic vs. Beijing Mainstreets Investment |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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