Correlation Between Songz Automobile and Ningbo Kangqiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Songz Automobile Air and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Songz Automobile and Ningbo Kangqiang 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 Songz Automobile with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Ningbo Kangqiang.
Diversification Opportunities for Songz Automobile and Ningbo Kangqiang
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Songz and Ningbo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Songz Automobile i.e., Songz Automobile and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Songz Automobile and Ningbo Kangqiang
Assuming the 90 days trading horizon Songz Automobile Air is expected to under-perform the Ningbo Kangqiang. But the stock apears to be less risky and, when comparing its historical volatility, Songz Automobile Air is 2.37 times less risky than Ningbo Kangqiang. The stock trades about -0.31 of its potential returns per unit of risk. The Ningbo Kangqiang Electronics is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,442 in Ningbo Kangqiang Electronics on October 16, 2024 and sell it today you would earn a total of 298.00 from holding Ningbo Kangqiang Electronics or generate 20.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Songz Automobile Air |
| Ningbo Kangqiang Ele |
Songz Automobile and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Ningbo Kangqiang
The main advantage of trading using opposite Songz Automobile and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Ningbo Kangqiang 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 Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Songz Automobile vs. Luolai Home Textile | Songz Automobile vs. Shanghai Shuixing Home | Songz Automobile vs. Xiamen Goldenhome Co | Songz Automobile vs. Mengtian Home Group |
| Ningbo Kangqiang vs. Soyea Technology Co | Ningbo Kangqiang vs. Guangzhou KingTeller Technology | Ningbo Kangqiang vs. Anhui Jianghuai Automobile | Ningbo Kangqiang vs. Iat Automobile Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |