Correlation Between Zhejiang Kingland and Ningbo GQY
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By analyzing existing cross correlation between Zhejiang Kingland Pipeline and Ningbo GQY Video, you can compare the effects of market volatilities on Zhejiang Kingland and Ningbo GQY 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 Zhejiang Kingland with a short position of Ningbo GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Kingland and Ningbo GQY.
Diversification Opportunities for Zhejiang Kingland and Ningbo GQY
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and Ningbo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Kingland Pipeline and Ningbo GQY Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo GQY Video and Zhejiang Kingland 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 Zhejiang Kingland Pipeline are associated (or correlated) with Ningbo GQY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo GQY Video has no effect on the direction of Zhejiang Kingland i.e., Zhejiang Kingland and Ningbo GQY go up and down completely randomly.
Pair Corralation between Zhejiang Kingland and Ningbo GQY
Assuming the 90 days trading horizon Zhejiang Kingland Pipeline is expected to under-perform the Ningbo GQY. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Kingland Pipeline is 3.23 times less risky than Ningbo GQY. The stock trades about -0.15 of its potential returns per unit of risk. The Ningbo GQY Video is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 619.00 in Ningbo GQY Video on August 27, 2024 and sell it today you would earn a total of 92.00 from holding Ningbo GQY Video or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Kingland Pipeline vs. Ningbo GQY Video
Performance |
| Timeline |
| Zhejiang Kingland |
| Ningbo GQY Video |
Zhejiang Kingland and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Kingland and Ningbo GQY
The main advantage of trading using opposite Zhejiang Kingland and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Kingland position performs unexpectedly, Ningbo GQY 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 GQY will offset losses from the drop in Ningbo GQY's long position.| Zhejiang Kingland vs. Zhejiang JIULI Hi tech | Zhejiang Kingland vs. Suzhou Mingzhi Technology | Zhejiang Kingland vs. Wuhan Yangtze Communication | Zhejiang Kingland vs. Hubei Yingtong Telecommunication |
| Ningbo GQY vs. Shandong Mining Machinery | Ningbo GQY vs. Fujian Oriental Silver | Ningbo GQY vs. Harbin Air Conditioning | Ningbo GQY vs. Tibet Huayu Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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