Correlation Between Ningbo Kangqiang and Fuda Alloy
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By analyzing existing cross correlation between Ningbo Kangqiang Electronics and Fuda Alloy Materials, you can compare the effects of market volatilities on Ningbo Kangqiang and Fuda Alloy 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 Fuda Alloy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Kangqiang and Fuda Alloy.
Diversification Opportunities for Ningbo Kangqiang and Fuda Alloy
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Fuda is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Kangqiang Electronics and Fuda Alloy Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuda Alloy Materials 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 Fuda Alloy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuda Alloy Materials has no effect on the direction of Ningbo Kangqiang i.e., Ningbo Kangqiang and Fuda Alloy go up and down completely randomly.
Pair Corralation between Ningbo Kangqiang and Fuda Alloy
Assuming the 90 days trading horizon Ningbo Kangqiang Electronics is expected to generate 1.13 times more return on investment than Fuda Alloy. However, Ningbo Kangqiang is 1.13 times more volatile than Fuda Alloy Materials. It trades about 0.03 of its potential returns per unit of risk. Fuda Alloy Materials is currently generating about 0.02 per unit of risk. If you would invest 1,462 in Ningbo Kangqiang Electronics on November 28, 2024 and sell it today you would earn a total of 354.00 from holding Ningbo Kangqiang Electronics or generate 24.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Kangqiang Electronics vs. Fuda Alloy Materials
Performance |
| Timeline |
| Ningbo Kangqiang Ele |
| Fuda Alloy Materials |
Ningbo Kangqiang and Fuda Alloy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Kangqiang and Fuda Alloy
The main advantage of trading using opposite Ningbo Kangqiang and Fuda Alloy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Kangqiang position performs unexpectedly, Fuda Alloy 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 Fuda Alloy will offset losses from the drop in Fuda Alloy's long position.| Ningbo Kangqiang vs. Southern PublishingMedia Co | Ningbo Kangqiang vs. Anshan Senyuan Road | Ningbo Kangqiang vs. Wasu Media Holding | Ningbo Kangqiang vs. XiAn Dagang Road |
| Fuda Alloy vs. Thinkingdom Media Group | Fuda Alloy vs. Jilin Jlu Communication | Fuda Alloy vs. BizConf Telecom Co | Fuda Alloy vs. Mega info Media CoLtd |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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