Correlation Between XiaMen HongXin and Ningbo Fangzheng
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on XiaMen HongXin 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 XiaMen HongXin with a short position of Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and Ningbo Fangzheng.
Diversification Opportunities for XiaMen HongXin and Ningbo Fangzheng
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XiaMen and Ningbo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech 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 XiaMen HongXin 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 XiaMen HongXin Electron tech 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 XiaMen HongXin i.e., XiaMen HongXin and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between XiaMen HongXin and Ningbo Fangzheng
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.58 times more return on investment than Ningbo Fangzheng. However, XiaMen HongXin is 1.58 times more volatile than Ningbo Fangzheng Automobile. It trades about 0.06 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.06 per unit of risk. If you would invest 2,008 in XiaMen HongXin Electron tech on October 30, 2024 and sell it today you would earn a total of 139.00 from holding XiaMen HongXin Electron tech or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| XiaMen HongXin Electron |
| Ningbo Fangzheng Aut |
XiaMen HongXin and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and Ningbo Fangzheng
The main advantage of trading using opposite XiaMen HongXin and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin 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.| XiaMen HongXin vs. Sportsoul Co Ltd | XiaMen HongXin vs. StarPower Semiconductor | XiaMen HongXin vs. Southchip Semiconductor Technology | XiaMen HongXin vs. Shannon Semiconductor Technology |
| Ningbo Fangzheng vs. Kweichow Moutai Co | Ningbo Fangzheng vs. Jiangsu Pacific Quartz | Ningbo Fangzheng vs. Shenzhen Transsion Holdings | Ningbo Fangzheng 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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