Correlation Between Ningbo Fangzheng and Blue Sail
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Blue Sail Medical, you can compare the effects of market volatilities on Ningbo Fangzheng and Blue Sail 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 Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Blue Sail.
Diversification Opportunities for Ningbo Fangzheng and Blue Sail
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Blue is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical 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 Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Blue Sail go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Blue Sail
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to generate 2.1 times more return on investment than Blue Sail. However, Ningbo Fangzheng is 2.1 times more volatile than Blue Sail Medical. It trades about -0.22 of its potential returns per unit of risk. Blue Sail Medical is currently generating about -0.54 per unit of risk. If you would invest 1,738 in Ningbo Fangzheng Automobile on October 17, 2024 and sell it today you would lose (271.00) from holding Ningbo Fangzheng Automobile or give up 15.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Blue Sail Medical
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Blue Sail Medical |
Ningbo Fangzheng and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Blue Sail
The main advantage of trading using opposite Ningbo Fangzheng and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Blue Sail 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 Blue Sail will offset losses from the drop in Blue Sail's long position.| Ningbo Fangzheng vs. Guangdong Marubi Biotechnology | Ningbo Fangzheng vs. Keeson Technology Corp | Ningbo Fangzheng vs. Eyebright Medical Technology | Ningbo Fangzheng vs. Hubei Forbon Technology |
| Blue Sail vs. Runjian Communication Co | Blue Sail vs. Ningbo Fangzheng Automobile | Blue Sail vs. Nanjing Putian Telecommunications | Blue Sail vs. Fiberhome Telecommunication Technologies |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |