Correlation Between Zhongfu Information and Ningbo Tech
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By analyzing existing cross correlation between Zhongfu Information and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Zhongfu Information and Ningbo Tech 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 Zhongfu Information with a short position of Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongfu Information and Ningbo Tech.
Diversification Opportunities for Zhongfu Information and Ningbo Tech
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongfu and Ningbo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zhongfu Information and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank and Zhongfu Information 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 Zhongfu Information are associated (or correlated) with Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Zhongfu Information i.e., Zhongfu Information and Ningbo Tech go up and down completely randomly.
Pair Corralation between Zhongfu Information and Ningbo Tech
Assuming the 90 days trading horizon Zhongfu Information is expected to under-perform the Ningbo Tech. In addition to that, Zhongfu Information is 1.56 times more volatile than Ningbo Tech Bank Co. It trades about -0.31 of its total potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about -0.13 per unit of volatility. If you would invest 311.00 in Ningbo Tech Bank Co on October 12, 2024 and sell it today you would lose (21.00) from holding Ningbo Tech Bank Co or give up 6.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongfu Information vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Zhongfu Information |
| Ningbo Tech Bank |
Zhongfu Information and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongfu Information and Ningbo Tech
The main advantage of trading using opposite Zhongfu Information and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongfu Information position performs unexpectedly, Ningbo Tech 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 Tech will offset losses from the drop in Ningbo Tech's long position.| Zhongfu Information vs. Ningbo Tech Bank Co | Zhongfu Information vs. Jiangsu Financial Leasing | Zhongfu Information vs. Zhongrun Resources Investment | Zhongfu Information vs. Xiandai Investment Co |
| Ningbo Tech vs. Goodwill E Health | Ningbo Tech vs. Wuhan Yangtze Communication | Ningbo Tech vs. Sunwave Communications Co | Ningbo Tech vs. Tongyu Communication |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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