Correlation Between Ningbo Jianan and Shenzhen Clou
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Ningbo Jianan and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Shenzhen Clou.
Diversification Opportunities for Ningbo Jianan and Shenzhen Clou
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Shenzhen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Ningbo Jianan i.e., Ningbo Jianan and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Shenzhen Clou
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 1.23 times more return on investment than Shenzhen Clou. However, Ningbo Jianan is 1.23 times more volatile than Shenzhen Clou Electronics. It trades about 0.13 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about 0.14 per unit of risk. If you would invest 1,854 in Ningbo Jianan Electronics on August 29, 2024 and sell it today you would earn a total of 558.00 from holding Ningbo Jianan Electronics or generate 30.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Shenzhen Clou Electronics |
Ningbo Jianan and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Shenzhen Clou
The main advantage of trading using opposite Ningbo Jianan and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| Ningbo Jianan vs. Caihong Display Devices | Ningbo Jianan vs. Shuhua Sports Co | Ningbo Jianan vs. Beijing Mainstreets Investment | Ningbo Jianan vs. Jiangsu Jinling Sports |
| Shenzhen Clou vs. PetroChina Co Ltd | Shenzhen Clou vs. China State Construction | Shenzhen Clou vs. China Mobile Limited | Shenzhen Clou vs. Industrial and Commercial |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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