Correlation Between Ningbo GQY and Changchun Faway
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By analyzing existing cross correlation between Ningbo GQY Video and Changchun Faway Automobile, you can compare the effects of market volatilities on Ningbo GQY and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo GQY and Changchun Faway.
Diversification Opportunities for Ningbo GQY and Changchun Faway
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Changchun is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo GQY Video and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Ningbo GQY i.e., Ningbo GQY and Changchun Faway go up and down completely randomly.
Pair Corralation between Ningbo GQY and Changchun Faway
Assuming the 90 days trading horizon Ningbo GQY Video is expected to generate 2.27 times more return on investment than Changchun Faway. However, Ningbo GQY is 2.27 times more volatile than Changchun Faway Automobile. It trades about 0.3 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.03 per unit of risk. If you would invest 590.00 in Ningbo GQY Video on September 13, 2024 and sell it today you would earn a total of 215.00 from holding Ningbo GQY Video or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo GQY Video vs. Changchun Faway Automobile
Performance |
| Timeline |
| Ningbo GQY Video |
| Changchun Faway Auto |
Ningbo GQY and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo GQY and Changchun Faway
The main advantage of trading using opposite Ningbo GQY and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo GQY position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| Ningbo GQY vs. Cultural Investment Holdings | Ningbo GQY vs. CICC Fund Management | Ningbo GQY vs. Henan Shuanghui Investment | Ningbo GQY vs. Zhongrun Resources Investment |
| Changchun Faway vs. BeiGene | Changchun Faway vs. Kweichow Moutai Co | Changchun Faway vs. Beijing Roborock Technology | Changchun Faway vs. G bits Network 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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