Correlation Between Ingenic Semiconductor and Ningbo Kangqiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ingenic Semiconductor and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Ingenic Semiconductor 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 Ingenic Semiconductor with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenic Semiconductor and Ningbo Kangqiang.
Diversification Opportunities for Ingenic Semiconductor and Ningbo Kangqiang
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ingenic and Ningbo is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ingenic Semiconductor 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 Ingenic Semiconductor 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 Ingenic Semiconductor 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 Ingenic Semiconductor i.e., Ingenic Semiconductor and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Ingenic Semiconductor and Ningbo Kangqiang
Assuming the 90 days trading horizon Ingenic Semiconductor is expected to under-perform the Ningbo Kangqiang. But the stock apears to be less risky and, when comparing its historical volatility, Ingenic Semiconductor is 1.54 times less risky than Ningbo Kangqiang. The stock trades about -0.16 of its potential returns per unit of risk. The 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 |
Ingenic Semiconductor vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Ingenic Semiconductor |
| Ningbo Kangqiang Ele |
Ingenic Semiconductor and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenic Semiconductor and Ningbo Kangqiang
The main advantage of trading using opposite Ingenic Semiconductor and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenic Semiconductor 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.The idea behind Ingenic Semiconductor and Ningbo Kangqiang Electronics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |