Correlation Between Zhonghang Electronic and Ningbo Kangqiang
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By analyzing existing cross correlation between Zhonghang Electronic Measuring and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Zhonghang Electronic 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 Zhonghang Electronic with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghang Electronic and Ningbo Kangqiang.
Diversification Opportunities for Zhonghang Electronic and Ningbo Kangqiang
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Zhonghang and Ningbo is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghang Electronic Measuring 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 Zhonghang Electronic 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 Zhonghang Electronic Measuring 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 Zhonghang Electronic i.e., Zhonghang Electronic and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Zhonghang Electronic and Ningbo Kangqiang
Assuming the 90 days trading horizon Zhonghang Electronic is expected to generate 14.57 times less return on investment than Ningbo Kangqiang. But when comparing it to its historical volatility, Zhonghang Electronic Measuring is 1.08 times less risky than Ningbo Kangqiang. It trades about 0.01 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,514 in Ningbo Kangqiang Electronics on October 12, 2024 and sell it today you would earn a total of 203.00 from holding Ningbo Kangqiang Electronics or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghang Electronic Measuring vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Zhonghang Electronic |
| Ningbo Kangqiang Ele |
Zhonghang Electronic and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghang Electronic and Ningbo Kangqiang
The main advantage of trading using opposite Zhonghang Electronic and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghang Electronic 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.| Zhonghang Electronic vs. Jiaozuo Wanfang Aluminum | Zhonghang Electronic vs. Zijin Mining Group | Zhonghang Electronic vs. Jiangsu Yanghe Brewery | Zhonghang Electronic vs. Chongqing Shunbo Aluminum |
| Ningbo Kangqiang vs. Guocheng Mining Co | Ningbo Kangqiang vs. Shenzhen Silver Basis | Ningbo Kangqiang vs. Hainan Mining Co | Ningbo Kangqiang vs. JCHX Mining Management |
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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