Correlation Between Ningbo Jianan and Tianjin LVYIN
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Ningbo Jianan and Tianjin LVYIN 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 Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Tianjin LVYIN.
Diversification Opportunities for Ningbo Jianan and Tianjin LVYIN
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Tianjin is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape 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 Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Ningbo Jianan i.e., Ningbo Jianan and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Tianjin LVYIN
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to under-perform the Tianjin LVYIN. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Jianan Electronics is 1.4 times less risky than Tianjin LVYIN. The stock trades about -0.15 of its potential returns per unit of risk. The Tianjin LVYIN Landscape is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 736.00 in Tianjin LVYIN Landscape on September 25, 2024 and sell it today you would lose (23.00) from holding Tianjin LVYIN Landscape or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Tianjin LVYIN Landscape |
Ningbo Jianan and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Tianjin LVYIN
The main advantage of trading using opposite Ningbo Jianan and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan position performs unexpectedly, Tianjin LVYIN 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 Tianjin LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| Ningbo Jianan vs. Industrial and Commercial | Ningbo Jianan vs. Agricultural Bank of | Ningbo Jianan vs. China Construction Bank | Ningbo Jianan vs. Bank of China |
| Tianjin LVYIN vs. Ming Yang Smart | Tianjin LVYIN vs. 159681 | Tianjin LVYIN vs. 159005 | Tianjin LVYIN vs. Loctek Ergonomic Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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