Correlation Between Ningbo Fangzheng and Shenyang Blue
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Shenyang Blue Silver, you can compare the effects of market volatilities on Ningbo Fangzheng and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Shenyang Blue.
Diversification Opportunities for Ningbo Fangzheng and Shenyang Blue
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Shenyang is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Shenyang Blue go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Shenyang Blue
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the Shenyang Blue. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Fangzheng Automobile is 1.52 times less risky than Shenyang Blue. The stock trades about -0.03 of its potential returns per unit of risk. The Shenyang Blue Silver is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,112 in Shenyang Blue Silver on October 27, 2024 and sell it today you would earn a total of 1,112 from holding Shenyang Blue Silver or generate 100.0% 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. Shenyang Blue Silver
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Shenyang Blue Silver |
Ningbo Fangzheng and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Shenyang Blue
The main advantage of trading using opposite Ningbo Fangzheng and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.| Ningbo Fangzheng vs. Kweichow Moutai Co | Ningbo Fangzheng vs. Jiangsu Pacific Quartz | Ningbo Fangzheng vs. Shenzhen Transsion Holdings | Ningbo Fangzheng vs. Beijing Roborock Technology |
| Shenyang Blue vs. Ningbo Ligong Online | Shenyang Blue vs. Western Mining Co | Shenyang Blue vs. Pengxin International Mining | Shenyang Blue vs. Zhejiang Kingland Pipeline |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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