Correlation Between Ningbo Fangzheng and Sunwave Communications
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Sunwave Communications Co, you can compare the effects of market volatilities on Ningbo Fangzheng and Sunwave Communications 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 Fangzheng with a short position of Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Sunwave Communications.
Diversification Opportunities for Ningbo Fangzheng and Sunwave Communications
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Sunwave is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications and Ningbo Fangzheng 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 Fangzheng Automobile are associated (or correlated) with Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Sunwave Communications go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Sunwave Communications
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to generate 0.52 times more return on investment than Sunwave Communications. However, Ningbo Fangzheng Automobile is 1.92 times less risky than Sunwave Communications. It trades about -0.29 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about -0.22 per unit of risk. If you would invest 1,807 in Ningbo Fangzheng Automobile on October 12, 2024 and sell it today you would lose (298.00) from holding Ningbo Fangzheng Automobile or give up 16.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Sunwave Communications Co
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Sunwave Communications |
Ningbo Fangzheng and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Sunwave Communications
The main advantage of trading using opposite Ningbo Fangzheng and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Sunwave Communications 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' long position.| Ningbo Fangzheng vs. Fujian Longzhou Transportation | Ningbo Fangzheng vs. ROPEOK Technology Group | Ningbo Fangzheng vs. Sinofibers Technology Co | Ningbo Fangzheng vs. Tianshui Huatian Technology |
| Sunwave Communications vs. Zhejiang Yongjin Metal | Sunwave Communications vs. Runjian Communication Co | Sunwave Communications vs. Tongling Nonferrous Metals | Sunwave Communications vs. CITIC Metal 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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