Correlation Between Ningbo Fangzheng and Xiamen Jihong
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Xiamen Jihong Package, you can compare the effects of market volatilities on Ningbo Fangzheng and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Xiamen Jihong.
Diversification Opportunities for Ningbo Fangzheng and Xiamen Jihong
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Xiamen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Xiamen Jihong
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the Xiamen Jihong. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Fangzheng Automobile is 1.08 times less risky than Xiamen Jihong. The stock trades about -0.03 of its potential returns per unit of risk. The Xiamen Jihong Package is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,493 in Xiamen Jihong Package on October 16, 2024 and sell it today you would lose (236.00) from holding Xiamen Jihong Package or give up 15.81% 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. Xiamen Jihong Package
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Xiamen Jihong Package |
Ningbo Fangzheng and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Xiamen Jihong
The main advantage of trading using opposite Ningbo Fangzheng and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Ningbo Fangzheng vs. Cabio Biotech Wuhan | Ningbo Fangzheng vs. XiaMen HongXin Electron tech | Ningbo Fangzheng vs. Jiangsu Yueda Investment | Ningbo Fangzheng vs. Hubei Geoway Investment |
| Xiamen Jihong vs. Giantec Semiconductor Corp | Xiamen Jihong vs. Eastroc Beverage Group | Xiamen Jihong vs. GigaDevice SemiconductorBeiji | Xiamen Jihong vs. Beijing Sanyuan Foods |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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