Correlation Between BlueFocus Communication and Ningbo GQY
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By analyzing existing cross correlation between BlueFocus Communication Group and Ningbo GQY Video, you can compare the effects of market volatilities on BlueFocus Communication 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 BlueFocus Communication with a short position of Ningbo GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and Ningbo GQY.
Diversification Opportunities for BlueFocus Communication and Ningbo GQY
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BlueFocus and Ningbo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group 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 BlueFocus Communication 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 BlueFocus Communication Group 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 BlueFocus Communication i.e., BlueFocus Communication and Ningbo GQY go up and down completely randomly.
Pair Corralation between BlueFocus Communication and Ningbo GQY
Assuming the 90 days trading horizon BlueFocus Communication is expected to generate 1.41 times less return on investment than Ningbo GQY. But when comparing it to its historical volatility, BlueFocus Communication Group is 1.15 times less risky than Ningbo GQY. It trades about 0.07 of its potential returns per unit of risk. Ningbo GQY Video is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 420.00 in Ningbo GQY Video on August 27, 2024 and sell it today you would earn a total of 266.00 from holding Ningbo GQY Video or generate 63.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueFocus Communication Group vs. Ningbo GQY Video
Performance |
| Timeline |
| BlueFocus Communication |
| Ningbo GQY Video |
BlueFocus Communication and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueFocus Communication and Ningbo GQY
The main advantage of trading using opposite BlueFocus Communication and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication 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.| BlueFocus Communication vs. Industrial and Commercial | BlueFocus Communication vs. Agricultural Bank of | BlueFocus Communication vs. China Construction Bank | BlueFocus Communication 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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