Correlation Between Ningbo Jianan and Techshine Electronics
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Techshine Electronics Co, you can compare the effects of market volatilities on Ningbo Jianan and Techshine Electronics 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 Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Techshine Electronics.
Diversification Opportunities for Ningbo Jianan and Techshine Electronics
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Techshine is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine 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 Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Ningbo Jianan i.e., Ningbo Jianan and Techshine Electronics go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Techshine Electronics
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 1.15 times more return on investment than Techshine Electronics. However, Ningbo Jianan is 1.15 times more volatile than Techshine Electronics Co. It trades about 0.13 of its potential returns per unit of risk. Techshine Electronics Co 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. Techshine Electronics Co
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Techshine Electronics |
Ningbo Jianan and Techshine Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Techshine Electronics
The main advantage of trading using opposite Ningbo Jianan and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' 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 |
| Techshine Electronics vs. China State Construction | Techshine Electronics vs. Huafa Industrial Co | Techshine Electronics vs. China International Capital | Techshine Electronics vs. Kweichow Moutai Co |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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