Correlation Between Ningbo Fangzheng and Poly Real
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Poly Real Estate, you can compare the effects of market volatilities on Ningbo Fangzheng and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Poly Real.
Diversification Opportunities for Ningbo Fangzheng and Poly Real
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Poly is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Poly Real go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Poly Real
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to generate 1.33 times more return on investment than Poly Real. However, Ningbo Fangzheng is 1.33 times more volatile than Poly Real Estate. It trades about -0.03 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.04 per unit of risk. If you would invest 2,887 in Ningbo Fangzheng Automobile on October 30, 2024 and sell it today you would lose (1,392) from holding Ningbo Fangzheng Automobile or give up 48.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Poly Real Estate
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Poly Real Estate |
Ningbo Fangzheng and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Poly Real
The main advantage of trading using opposite Ningbo Fangzheng and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real'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 |
| Poly Real vs. Guangzhou Restaurants Group | Poly Real vs. Easyhome New Retail | Poly Real vs. Shandong Sanyuan Biotechnology | Poly Real vs. Luolai Home Textile |
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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