Correlation Between Ningbo Kangqiang and Anhui Transport
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By analyzing existing cross correlation between Ningbo Kangqiang Electronics and Anhui Transport Consulting, you can compare the effects of market volatilities on Ningbo Kangqiang and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Kangqiang and Anhui Transport.
Diversification Opportunities for Ningbo Kangqiang and Anhui Transport
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ningbo and Anhui is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Kangqiang Electronics and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Ningbo Kangqiang i.e., Ningbo Kangqiang and Anhui Transport go up and down completely randomly.
Pair Corralation between Ningbo Kangqiang and Anhui Transport
Assuming the 90 days trading horizon Ningbo Kangqiang Electronics is expected to generate 1.27 times more return on investment than Anhui Transport. However, Ningbo Kangqiang is 1.27 times more volatile than Anhui Transport Consulting. It trades about 0.04 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about -0.01 per unit of risk. If you would invest 1,235 in Ningbo Kangqiang Electronics on October 16, 2024 and sell it today you would earn a total of 505.00 from holding Ningbo Kangqiang Electronics or generate 40.89% 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. Anhui Transport Consulting
Performance |
| Timeline |
| Ningbo Kangqiang Ele |
| Anhui Transport Cons |
Ningbo Kangqiang and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Kangqiang and Anhui Transport
The main advantage of trading using opposite Ningbo Kangqiang and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Kangqiang position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Ningbo Kangqiang vs. Soyea Technology Co | Ningbo Kangqiang vs. Guangzhou KingTeller Technology | Ningbo Kangqiang vs. Anhui Jianghuai Automobile | Ningbo Kangqiang vs. Iat Automobile Technology |
| Anhui Transport vs. Ningbo Kangqiang Electronics | Anhui Transport vs. Rising Nonferrous Metals | Anhui Transport vs. China Minmetals Rare | Anhui Transport vs. Sihui Fuji 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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