Correlation Between Ningbo Fangzheng and Jinzai Food
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Jinzai Food Group, you can compare the effects of market volatilities on Ningbo Fangzheng and Jinzai Food 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 Jinzai Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Jinzai Food.
Diversification Opportunities for Ningbo Fangzheng and Jinzai Food
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Jinzai is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Jinzai Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinzai Food Group 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 Jinzai Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinzai Food Group has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Jinzai Food go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Jinzai Food
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the Jinzai Food. In addition to that, Ningbo Fangzheng is 1.18 times more volatile than Jinzai Food Group. It trades about -0.02 of its total potential returns per unit of risk. Jinzai Food Group is currently generating about 0.03 per unit of volatility. If you would invest 1,056 in Jinzai Food Group on October 10, 2024 and sell it today you would earn a total of 286.00 from holding Jinzai Food Group or generate 27.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Jinzai Food Group
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Jinzai Food Group |
Ningbo Fangzheng and Jinzai Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Jinzai Food
The main advantage of trading using opposite Ningbo Fangzheng and Jinzai Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Jinzai Food 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 Jinzai Food will offset losses from the drop in Jinzai Food's long position.| Ningbo Fangzheng vs. Fujian Longzhou Transportation | Ningbo Fangzheng vs. Hunan TV Broadcast | Ningbo Fangzheng vs. Guangzhou Zhujiang Brewery | Ningbo Fangzheng vs. Heilongjiang Transport Development |
| Jinzai Food vs. Fujian Boss Software | Jinzai Food vs. Ningbo Ligong Online | Jinzai Food vs. Sichuan Hebang Biotechnology | Jinzai Food vs. Anhui Huaheng Biotechnology |
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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