Correlation Between Ningbo Fangzheng and Glodon Software
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Glodon Software Co, you can compare the effects of market volatilities on Ningbo Fangzheng and Glodon Software 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 Glodon Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Glodon Software.
Diversification Opportunities for Ningbo Fangzheng and Glodon Software
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Glodon is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Glodon Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glodon Software 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 Glodon Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glodon Software has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Glodon Software go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Glodon Software
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to generate 1.09 times more return on investment than Glodon Software. However, Ningbo Fangzheng is 1.09 times more volatile than Glodon Software Co. It trades about 0.12 of its potential returns per unit of risk. Glodon Software Co is currently generating about -0.12 per unit of risk. If you would invest 1,500 in Ningbo Fangzheng Automobile on September 1, 2024 and sell it today you would earn a total of 123.00 from holding Ningbo Fangzheng Automobile or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Glodon Software Co
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Glodon Software |
Ningbo Fangzheng and Glodon Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Glodon Software
The main advantage of trading using opposite Ningbo Fangzheng and Glodon Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Glodon Software 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 Glodon Software will offset losses from the drop in Glodon Software's long position.| Ningbo Fangzheng vs. Hangzhou Prevail Optoelectronic | Ningbo Fangzheng vs. Xizi Clean Energy | Ningbo Fangzheng vs. AVIC Fund Management | Ningbo Fangzheng vs. Harvest Fund Management |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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