Correlation Between Dongguan Chitwing and Ningbo GQY
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By analyzing existing cross correlation between Dongguan Chitwing Technology and Ningbo GQY Video, you can compare the effects of market volatilities on Dongguan Chitwing 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 Dongguan Chitwing with a short position of Ningbo GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongguan Chitwing and Ningbo GQY.
Diversification Opportunities for Dongguan Chitwing and Ningbo GQY
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongguan and Ningbo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Dongguan Chitwing Technology 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 Dongguan Chitwing 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 Dongguan Chitwing Technology 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 Dongguan Chitwing i.e., Dongguan Chitwing and Ningbo GQY go up and down completely randomly.
Pair Corralation between Dongguan Chitwing and Ningbo GQY
Assuming the 90 days trading horizon Dongguan Chitwing Technology is expected to generate 0.89 times more return on investment than Ningbo GQY. However, Dongguan Chitwing Technology is 1.13 times less risky than Ningbo GQY. It trades about 0.22 of its potential returns per unit of risk. Ningbo GQY Video is currently generating about 0.19 per unit of risk. If you would invest 2,242 in Dongguan Chitwing Technology on August 24, 2024 and sell it today you would earn a total of 478.00 from holding Dongguan Chitwing Technology or generate 21.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongguan Chitwing Technology vs. Ningbo GQY Video
Performance |
| Timeline |
| Dongguan Chitwing |
| Ningbo GQY Video |
Dongguan Chitwing and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongguan Chitwing and Ningbo GQY
The main advantage of trading using opposite Dongguan Chitwing and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongguan Chitwing 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.| Dongguan Chitwing vs. Industrial and Commercial | Dongguan Chitwing vs. China Construction Bank | Dongguan Chitwing vs. Agricultural Bank of | Dongguan Chitwing vs. Bank of China |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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