Correlation Between Ningbo Jianan and Kunshan Guoli
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Kunshan Guoli Electronic, you can compare the effects of market volatilities on Ningbo Jianan and Kunshan Guoli 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 Kunshan Guoli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Kunshan Guoli.
Diversification Opportunities for Ningbo Jianan and Kunshan Guoli
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Kunshan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics and Kunshan Guoli Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunshan Guoli Electronic 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 Kunshan Guoli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunshan Guoli Electronic has no effect on the direction of Ningbo Jianan i.e., Ningbo Jianan and Kunshan Guoli go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Kunshan Guoli
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 0.83 times more return on investment than Kunshan Guoli. However, Ningbo Jianan Electronics is 1.21 times less risky than Kunshan Guoli. It trades about 0.17 of its potential returns per unit of risk. Kunshan Guoli Electronic is currently generating about -0.02 per unit of risk. If you would invest 2,190 in Ningbo Jianan Electronics on August 30, 2024 and sell it today you would earn a total of 283.00 from holding Ningbo Jianan Electronics or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Kunshan Guoli Electronic
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Kunshan Guoli Electronic |
Ningbo Jianan and Kunshan Guoli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Kunshan Guoli
The main advantage of trading using opposite Ningbo Jianan and Kunshan Guoli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan position performs unexpectedly, Kunshan Guoli 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 Kunshan Guoli will offset losses from the drop in Kunshan Guoli's long position.| Ningbo Jianan vs. GigaDevice SemiconductorBeiji | Ningbo Jianan vs. Shandong Hongchuang Aluminum | Ningbo Jianan vs. Rising Nonferrous Metals | Ningbo Jianan vs. China Aluminum International |
| Kunshan Guoli vs. Cultural Investment Holdings | Kunshan Guoli vs. Gome Telecom Equipment | Kunshan Guoli vs. Bus Online Co | Kunshan Guoli vs. Holitech Technology 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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