Correlation Between Hunan Mendale and Ningbo Construction
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Ningbo Construction Co, you can compare the effects of market volatilities on Hunan Mendale and Ningbo Construction 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 Hunan Mendale with a short position of Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Ningbo Construction.
Diversification Opportunities for Hunan Mendale and Ningbo Construction
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hunan and Ningbo is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction and Hunan Mendale 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 Hunan Mendale Hometextile are associated (or correlated) with Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and Ningbo Construction go up and down completely randomly.
Pair Corralation between Hunan Mendale and Ningbo Construction
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 1.77 times more return on investment than Ningbo Construction. However, Hunan Mendale is 1.77 times more volatile than Ningbo Construction Co. It trades about 0.01 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about -0.06 per unit of risk. If you would invest 320.00 in Hunan Mendale Hometextile on October 30, 2024 and sell it today you would lose (11.00) from holding Hunan Mendale Hometextile or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Ningbo Construction Co
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Ningbo Construction |
Hunan Mendale and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Ningbo Construction
The main advantage of trading using opposite Hunan Mendale and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, Ningbo Construction 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 Ningbo Construction will offset losses from the drop in Ningbo Construction's long position.| Hunan Mendale vs. Zhongshan Public Utilities | Hunan Mendale vs. Tianjin Hi Tech Development | Hunan Mendale vs. Xiamen Jihong Package | Hunan Mendale vs. Fiberhome Telecommunication Technologies |
| Ningbo Construction vs. Industrial and Commercial | Ningbo Construction vs. China Construction Bank | Ningbo Construction vs. Agricultural Bank of | Ningbo Construction vs. Bank of China |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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