Correlation Between Ningbo Kangqiang and Northern United
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By analyzing existing cross correlation between Ningbo Kangqiang Electronics and Northern United Publishing, you can compare the effects of market volatilities on Ningbo Kangqiang and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Kangqiang and Northern United.
Diversification Opportunities for Ningbo Kangqiang and Northern United
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ningbo and Northern is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Kangqiang Electronics and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Ningbo Kangqiang i.e., Ningbo Kangqiang and Northern United go up and down completely randomly.
Pair Corralation between Ningbo Kangqiang and Northern United
Assuming the 90 days trading horizon Ningbo Kangqiang Electronics is expected to generate 1.4 times more return on investment than Northern United. However, Ningbo Kangqiang is 1.4 times more volatile than Northern United Publishing. It trades about 0.12 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.0 per unit of risk. If you would invest 1,285 in Ningbo Kangqiang Electronics on October 14, 2024 and sell it today you would earn a total of 398.00 from holding Ningbo Kangqiang Electronics or generate 30.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Kangqiang Electronics vs. Northern United Publishing
Performance |
| Timeline |
| Ningbo Kangqiang Ele |
| Northern United Publ |
Ningbo Kangqiang and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Kangqiang and Northern United
The main advantage of trading using opposite Ningbo Kangqiang and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Kangqiang position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Ningbo Kangqiang vs. Cloud Live Technology | Ningbo Kangqiang vs. Nanjing Putian Telecommunications | Ningbo Kangqiang vs. Tianjin Realty Development | Ningbo Kangqiang vs. Shenzhen Coship Electronics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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