Correlation Between Xiamen Jihong and Ningbo Kangqiang
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By analyzing existing cross correlation between Xiamen Jihong Package and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Ningbo Kangqiang.
Diversification Opportunities for Xiamen Jihong and Ningbo Kangqiang
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiamen and Ningbo is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package 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 Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Ningbo Kangqiang
Assuming the 90 days trading horizon Xiamen Jihong is expected to generate 13.58 times less return on investment than Ningbo Kangqiang. In addition to that, Xiamen Jihong is 1.06 times more volatile than Ningbo Kangqiang Electronics. It trades about 0.0 of its total potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.04 per unit of volatility. If you would invest 1,233 in Ningbo Kangqiang Electronics on October 13, 2024 and sell it today you would earn a total of 450.00 from holding Ningbo Kangqiang Electronics or generate 36.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Xiamen Jihong Package |
| Ningbo Kangqiang Ele |
Xiamen Jihong and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Ningbo Kangqiang
The main advantage of trading using opposite Xiamen Jihong and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Shenzhen Silver Basis | Xiamen Jihong vs. Jilin OLED Material | Xiamen Jihong vs. Western Mining Co | Xiamen Jihong vs. Guangdong Silvere Sci |
| Ningbo Kangqiang vs. Anji Foodstuff Co | Ningbo Kangqiang vs. Xiamen Jihong Package | Ningbo Kangqiang vs. Jahen Household Products | Ningbo Kangqiang vs. Bohai Leasing Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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