Correlation Between Ningbo Jianan and Shandong Publishing
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Shandong Publishing Media, you can compare the effects of market volatilities on Ningbo Jianan and Shandong Publishing 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Shandong Publishing.
Diversification Opportunities for Ningbo Jianan and Shandong Publishing
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ningbo and Shandong is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of Ningbo Jianan i.e., Ningbo Jianan and Shandong Publishing go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Shandong Publishing
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 1.77 times more return on investment than Shandong Publishing. However, Ningbo Jianan is 1.77 times more volatile than Shandong Publishing Media. It trades about 0.09 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about 0.03 per unit of risk. If you would invest 1,351 in Ningbo Jianan Electronics on August 29, 2024 and sell it today you would earn a total of 1,061 from holding Ningbo Jianan Electronics or generate 78.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Shandong Publishing Media
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Shandong Publishing Media |
Ningbo Jianan and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Shandong Publishing
The main advantage of trading using opposite Ningbo Jianan and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing'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 |
| Shandong Publishing vs. Industrial and Commercial | Shandong Publishing vs. Agricultural Bank of | Shandong Publishing vs. China Construction Bank | Shandong Publishing vs. Bank of China |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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