Correlation Between Ningbo Jianan and Jiangsu Zhongtian
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Ningbo Jianan and Jiangsu Zhongtian 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 Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Jiangsu Zhongtian.
Diversification Opportunities for Ningbo Jianan and Jiangsu Zhongtian
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Jiangsu is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian 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 Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Ningbo Jianan i.e., Ningbo Jianan and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Jiangsu Zhongtian
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 1.61 times more return on investment than Jiangsu Zhongtian. However, Ningbo Jianan is 1.61 times more volatile than Jiangsu Zhongtian Technology. It trades about -0.05 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.09 per unit of risk. If you would invest 2,450 in Ningbo Jianan Electronics on September 26, 2024 and sell it today you would lose (91.00) from holding Ningbo Jianan Electronics or give up 3.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Jiangsu Zhongtian |
Ningbo Jianan and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Jiangsu Zhongtian
The main advantage of trading using opposite Ningbo Jianan and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan position performs unexpectedly, Jiangsu Zhongtian 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 Jiangsu Zhongtian will offset losses from the drop in Jiangsu Zhongtian'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 |
| Jiangsu Zhongtian vs. Kweichow Moutai Co | Jiangsu Zhongtian vs. Contemporary Amperex Technology | Jiangsu Zhongtian vs. G bits Network Technology | Jiangsu Zhongtian vs. BYD Co Ltd |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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