Correlation Between Ningbo GQY and Suofeiya Home
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By analyzing existing cross correlation between Ningbo GQY Video and Suofeiya Home Collection, you can compare the effects of market volatilities on Ningbo GQY and Suofeiya Home 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 Ningbo GQY with a short position of Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo GQY and Suofeiya Home.
Diversification Opportunities for Ningbo GQY and Suofeiya Home
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Suofeiya is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo GQY Video and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection and Ningbo GQY 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 Ningbo GQY Video are associated (or correlated) with Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of Ningbo GQY i.e., Ningbo GQY and Suofeiya Home go up and down completely randomly.
Pair Corralation between Ningbo GQY and Suofeiya Home
Assuming the 90 days trading horizon Ningbo GQY Video is expected to generate 1.87 times more return on investment than Suofeiya Home. However, Ningbo GQY is 1.87 times more volatile than Suofeiya Home Collection. It trades about 0.19 of its potential returns per unit of risk. Suofeiya Home Collection is currently generating about -0.15 per unit of risk. If you would invest 529.00 in Ningbo GQY Video on August 24, 2024 and sell it today you would earn a total of 109.00 from holding Ningbo GQY Video or generate 20.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo GQY Video vs. Suofeiya Home Collection
Performance |
| Timeline |
| Ningbo GQY Video |
| Suofeiya Home Collection |
Ningbo GQY and Suofeiya Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo GQY and Suofeiya Home
The main advantage of trading using opposite Ningbo GQY and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo GQY position performs unexpectedly, Suofeiya Home 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.| Ningbo GQY vs. King Strong New Material | Ningbo GQY vs. Shandong Sanyuan Biotechnology | Ningbo GQY vs. Maccura Biotechnology Co | Ningbo GQY vs. Wuhan Hvsen Biotechnology |
| Suofeiya Home vs. Kweichow Moutai Co | Suofeiya Home vs. Contemporary Amperex Technology | Suofeiya Home vs. G bits Network Technology | Suofeiya Home vs. Beijing Roborock Technology |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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