Correlation Between Songz Automobile and Ningbo Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Songz Automobile Air and Ningbo Construction Co, you can compare the effects of market volatilities on Songz Automobile 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 Songz Automobile with a short position of Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Ningbo Construction.
Diversification Opportunities for Songz Automobile and Ningbo Construction
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Songz and Ningbo is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 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 Songz Automobile i.e., Songz Automobile and Ningbo Construction go up and down completely randomly.
Pair Corralation between Songz Automobile and Ningbo Construction
Assuming the 90 days trading horizon Songz Automobile is expected to generate 2.42 times less return on investment than Ningbo Construction. But when comparing it to its historical volatility, Songz Automobile Air is 1.61 times less risky than Ningbo Construction. It trades about 0.09 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Ningbo Construction Co on August 27, 2024 and sell it today you would earn a total of 49.00 from holding Ningbo Construction Co or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Ningbo Construction Co
Performance |
| Timeline |
| Songz Automobile Air |
| Ningbo Construction |
Songz Automobile and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Ningbo Construction
The main advantage of trading using opposite Songz Automobile and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile 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.| Songz Automobile vs. Loongson Technology Corp | Songz Automobile vs. Chongqing Road Bridge | Songz Automobile vs. Shenzhen Fortune Trend | Songz Automobile vs. Wuhan Xianglong Power |
| Ningbo Construction vs. Songz Automobile Air | Ningbo Construction vs. Guangzhou Haige Communications | Ningbo Construction vs. HaiXin Foods Co | Ningbo Construction vs. New Hope Dairy |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |