Correlation Between Ningbo Jianan and Shaanxi Meineng
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Ningbo Jianan and Shaanxi Meineng 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 Ningbo Jianan with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Shaanxi Meineng.
Diversification Opportunities for Ningbo Jianan and Shaanxi Meineng
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Shaanxi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and Ningbo Jianan 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 Ningbo Jianan Electronics are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Ningbo Jianan i.e., Ningbo Jianan and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Shaanxi Meineng
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 0.93 times more return on investment than Shaanxi Meineng. However, Ningbo Jianan Electronics is 1.07 times less risky than Shaanxi Meineng. It trades about 0.25 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about -0.01 per unit of risk. If you would invest 2,152 in Ningbo Jianan Electronics on November 28, 2024 and sell it today you would earn a total of 150.00 from holding Ningbo Jianan Electronics or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Shaanxi Meineng Clean |
Ningbo Jianan and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Shaanxi Meineng
The main advantage of trading using opposite Ningbo Jianan and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Ningbo Jianan vs. China Eastern Airlines | Ningbo Jianan vs. Long Yuan Construction | Ningbo Jianan vs. Juneyao Airlines | Ningbo Jianan vs. Yingde Greatchem Chemicals |
| Shaanxi Meineng vs. Shandong Publishing Media | Shaanxi Meineng vs. Dezhan HealthCare Co | Shaanxi Meineng vs. Chinese Universe Publishing | Shaanxi Meineng vs. Shanghai Action Education |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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