Correlation Between Ningbo Fangzheng and Beijing Venustech
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Beijing Venustech, you can compare the effects of market volatilities on Ningbo Fangzheng and Beijing Venustech 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 Beijing Venustech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Beijing Venustech.
Diversification Opportunities for Ningbo Fangzheng and Beijing Venustech
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Beijing is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Beijing Venustech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Venustech 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 Beijing Venustech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Venustech has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Beijing Venustech go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Beijing Venustech
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to generate 1.24 times more return on investment than Beijing Venustech. However, Ningbo Fangzheng is 1.24 times more volatile than Beijing Venustech. It trades about 0.15 of its potential returns per unit of risk. Beijing Venustech is currently generating about -0.22 per unit of risk. If you would invest 1,656 in Ningbo Fangzheng Automobile on September 13, 2024 and sell it today you would earn a total of 151.00 from holding Ningbo Fangzheng Automobile or generate 9.12% 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. Beijing Venustech
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Beijing Venustech |
Ningbo Fangzheng and Beijing Venustech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Beijing Venustech
The main advantage of trading using opposite Ningbo Fangzheng and Beijing Venustech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Beijing Venustech 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 Beijing Venustech will offset losses from the drop in Beijing Venustech's long position.| Ningbo Fangzheng vs. BeiGene | Ningbo Fangzheng vs. Kweichow Moutai Co | Ningbo Fangzheng vs. Beijing Roborock Technology | Ningbo Fangzheng vs. G bits Network Technology |
| Beijing Venustech vs. Hainan Mining Co | Beijing Venustech vs. Yindu Kitchen Equipment | Beijing Venustech vs. Guangdong Jingyi Metal | Beijing Venustech vs. Jahen Household Products |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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