Correlation Between Ningbo Jianan and Leaguer Shenzhen
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By analyzing existing cross correlation between Ningbo Jianan Electronics and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Ningbo Jianan and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jianan and Leaguer Shenzhen.
Diversification Opportunities for Ningbo Jianan and Leaguer Shenzhen
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Leaguer is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jianan Electronics and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Ningbo Jianan i.e., Ningbo Jianan and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Ningbo Jianan and Leaguer Shenzhen
Assuming the 90 days trading horizon Ningbo Jianan Electronics is expected to generate 0.86 times more return on investment than Leaguer Shenzhen. However, Ningbo Jianan Electronics is 1.17 times less risky than Leaguer Shenzhen. It trades about 0.0 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about -0.09 per unit of risk. If you would invest 2,264 in Ningbo Jianan Electronics on August 27, 2024 and sell it today you would lose (14.00) from holding Ningbo Jianan Electronics or give up 0.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jianan Electronics vs. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Ningbo Jianan Electronics |
| Leaguer Shenzhen Mic |
Ningbo Jianan and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jianan and Leaguer Shenzhen
The main advantage of trading using opposite Ningbo Jianan and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jianan position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.| Ningbo Jianan vs. Mengtian Home Group | Ningbo Jianan vs. Nanjing OLO Home | Ningbo Jianan vs. Tonghua Grape Wine | Ningbo Jianan vs. Suofeiya Home Collection |
| Leaguer Shenzhen vs. Lutian Machinery Co | Leaguer Shenzhen vs. China Longyuan Power | Leaguer Shenzhen vs. Changshu Tongrun Auto | Leaguer Shenzhen vs. PetroChina 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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