Correlation Between Hunan Mendale and Ningbo Fujia
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Hunan Mendale and Ningbo Fujia 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 Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Ningbo Fujia.
Diversification Opportunities for Hunan Mendale and Ningbo Fujia
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Ningbo is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia Industrial 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 Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Hunan Mendale and Ningbo Fujia
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 1.34 times more return on investment than Ningbo Fujia. However, Hunan Mendale is 1.34 times more volatile than Ningbo Fujia Industrial. It trades about 0.16 of its potential returns per unit of risk. Ningbo Fujia Industrial is currently generating about 0.03 per unit of risk. If you would invest 227.00 in Hunan Mendale Hometextile on October 14, 2024 and sell it today you would earn a total of 111.00 from holding Hunan Mendale Hometextile or generate 48.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Ningbo Fujia Industrial
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Ningbo Fujia Industrial |
Hunan Mendale and Ningbo Fujia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Ningbo Fujia
The main advantage of trading using opposite Hunan Mendale and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, Ningbo Fujia 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 Fujia will offset losses from the drop in Ningbo Fujia's long position.| Hunan Mendale vs. BYD Co Ltd | Hunan Mendale vs. China Mobile Limited | Hunan Mendale vs. Agricultural Bank of | Hunan Mendale vs. Industrial and Commercial |
| Ningbo Fujia vs. Shuhua Sports Co | Ningbo Fujia vs. Ningbo Homelink Eco iTech | Ningbo Fujia vs. Hunan Mendale Hometextile | Ningbo Fujia vs. Shandong Homey Aquatic |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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