Correlation Between Ningbo Jianan and Unigroup Guoxin
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Unigroup Guoxin Microelectronics, you can compare the effects of market volatilities on Ningbo Jianan and Unigroup Guoxin 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 Unigroup Guoxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Unigroup Guoxin.
Diversification Opportunities for Ningbo Jianan and Unigroup Guoxin
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Unigroup is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics and Unigroup Guoxin Microelectroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unigroup Guoxin Micr 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 Unigroup Guoxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unigroup Guoxin Micr has no effect on the direction of Ningbo Jianan i.e., Ningbo Jianan and Unigroup Guoxin go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Unigroup Guoxin
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 1.34 times more return on investment than Unigroup Guoxin. However, Ningbo Jianan is 1.34 times more volatile than Unigroup Guoxin Microelectronics. It trades about 0.08 of its potential returns per unit of risk. Unigroup Guoxin Microelectronics is currently generating about 0.02 per unit of risk. If you would invest 1,263 in Ningbo Jianan Electronics on November 5, 2024 and sell it today you would earn a total of 889.00 from holding Ningbo Jianan Electronics or generate 70.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Unigroup Guoxin Microelectroni
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Unigroup Guoxin Micr |
Ningbo Jianan and Unigroup Guoxin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Unigroup Guoxin
The main advantage of trading using opposite Ningbo Jianan and Unigroup Guoxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan position performs unexpectedly, Unigroup Guoxin 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 Unigroup Guoxin will offset losses from the drop in Unigroup Guoxin's long position.| Ningbo Jianan vs. Hubei Geoway Investment | Ningbo Jianan vs. Yankershop Food Co | Ningbo Jianan vs. JuneYao Dairy Co | Ningbo Jianan vs. Shaanxi Energy Investment |
| Unigroup Guoxin vs. Do Fluoride Chemicals Co | Unigroup Guoxin vs. Harbin Hatou Investment | Unigroup Guoxin vs. Shaanxi Energy Investment | Unigroup Guoxin vs. Hubei Geoway Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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