Correlation Between Ingenic Semiconductor and Ningbo Fangzheng
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By analyzing existing cross correlation between Ingenic Semiconductor and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Ingenic Semiconductor and Ningbo Fangzheng 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 Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenic Semiconductor and Ningbo Fangzheng.
Diversification Opportunities for Ingenic Semiconductor and Ningbo Fangzheng
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ingenic and Ningbo is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ingenic Semiconductor and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut 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 Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Ingenic Semiconductor i.e., Ingenic Semiconductor and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Ingenic Semiconductor and Ningbo Fangzheng
Assuming the 90 days trading horizon Ingenic Semiconductor is expected to generate 1.08 times more return on investment than Ningbo Fangzheng. However, Ingenic Semiconductor is 1.08 times more volatile than Ningbo Fangzheng Automobile. It trades about 0.0 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.03 per unit of risk. If you would invest 7,937 in Ingenic Semiconductor on October 13, 2024 and sell it today you would lose (1,847) from holding Ingenic Semiconductor or give up 23.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingenic Semiconductor vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Ingenic Semiconductor |
| Ningbo Fangzheng Aut |
Ingenic Semiconductor and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenic Semiconductor and Ningbo Fangzheng
The main advantage of trading using opposite Ingenic Semiconductor and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenic Semiconductor position performs unexpectedly, Ningbo Fangzheng 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 Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Ingenic Semiconductor vs. Longjian Road Bridge | Ingenic Semiconductor vs. Jiangsu GDK Biotechnology | Ingenic Semiconductor vs. Wuhan Hvsen Biotechnology | Ingenic Semiconductor vs. Jinhe Biotechnology Co |
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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 Positions Ratings module to 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.
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