Correlation Between Guangdong Brandmax and Ningbo Kangqiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Brandmax Marketing and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Guangdong Brandmax 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 Guangdong Brandmax with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Ningbo Kangqiang.
Diversification Opportunities for Guangdong Brandmax and Ningbo Kangqiang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Ningbo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing 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 Guangdong Brandmax 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 Guangdong Brandmax Marketing 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 Guangdong Brandmax i.e., Guangdong Brandmax and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Ningbo Kangqiang
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 0.99 times more return on investment than Ningbo Kangqiang. However, Guangdong Brandmax Marketing is 1.01 times less risky than Ningbo Kangqiang. It trades about 0.17 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.12 per unit of risk. If you would invest 802.00 in Guangdong Brandmax Marketing on September 13, 2024 and sell it today you would earn a total of 209.00 from holding Guangdong Brandmax Marketing or generate 26.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.73% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Guangdong Brandmax |
| Ningbo Kangqiang Ele |
Guangdong Brandmax and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Ningbo Kangqiang
The main advantage of trading using opposite Guangdong Brandmax and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax 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.| Guangdong Brandmax vs. Jiangsu Yanghe Brewery | Guangdong Brandmax vs. Jiangyin Jianghua Microelectronics | Guangdong Brandmax vs. YiDong Electronics Technology | Guangdong Brandmax vs. Tsingtao Brewery Co |
| Ningbo Kangqiang vs. Nanjing Putian Telecommunications | Ningbo Kangqiang vs. Tianjin Realty Development | Ningbo Kangqiang vs. Kangyue Technology Co | Ningbo Kangqiang vs. Shenzhen Hifuture Electric |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |