Correlation Between Suofeiya Home and Ningbo Jianan
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By analyzing existing cross correlation between Suofeiya Home Collection and Ningbo Jianan Electronics, you can compare the effects of market volatilities on Suofeiya Home and Ningbo Jianan 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 Suofeiya Home with a short position of Ningbo Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suofeiya Home and Ningbo Jianan.
Diversification Opportunities for Suofeiya Home and Ningbo Jianan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Suofeiya and Ningbo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Suofeiya Home Collection and Ningbo Jianan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jianan Electronics and Suofeiya Home 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 Suofeiya Home Collection are associated (or correlated) with Ningbo Jianan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jianan Electronics has no effect on the direction of Suofeiya Home i.e., Suofeiya Home and Ningbo Jianan go up and down completely randomly.
Pair Corralation between Suofeiya Home and Ningbo Jianan
Assuming the 90 days trading horizon Suofeiya Home Collection is expected to under-perform the Ningbo Jianan. But the stock apears to be less risky and, when comparing its historical volatility, Suofeiya Home Collection is 1.18 times less risky than Ningbo Jianan. The stock trades about -0.09 of its potential returns per unit of risk. The Ningbo Jianan Electronics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,147 in Ningbo Jianan Electronics on August 31, 2024 and sell it today you would earn a total of 267.00 from holding Ningbo Jianan Electronics or generate 12.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suofeiya Home Collection vs. Ningbo Jianan Electronics
Performance |
| Timeline |
| Suofeiya Home Collection |
| Ningbo Jianan Electronics |
Suofeiya Home and Ningbo Jianan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suofeiya Home and Ningbo Jianan
The main advantage of trading using opposite Suofeiya Home and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suofeiya Home position performs unexpectedly, Ningbo Jianan 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 Jianan will offset losses from the drop in Ningbo Jianan's long position.| Suofeiya Home vs. Shandong Publishing Media | Suofeiya Home vs. Shanghai Ziyan Foods | Suofeiya Home vs. Eastroc Beverage Group | Suofeiya Home vs. Northern United Publishing |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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