Correlation Between Ningbo Fangzheng and Changjiang Publishing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Changjiang Publishing Media, you can compare the effects of market volatilities on Ningbo Fangzheng and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Changjiang Publishing.
Diversification Opportunities for Ningbo Fangzheng and Changjiang Publishing
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Changjiang is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Changjiang Publishing
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to generate 1.5 times more return on investment than Changjiang Publishing. However, Ningbo Fangzheng is 1.5 times more volatile than Changjiang Publishing Media. It trades about -0.07 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about -0.13 per unit of risk. If you would invest 1,557 in Ningbo Fangzheng Automobile on October 28, 2024 and sell it today you would lose (77.00) from holding Ningbo Fangzheng Automobile or give up 4.95% 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. Changjiang Publishing Media
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Changjiang Publishing |
Ningbo Fangzheng and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Changjiang Publishing
The main advantage of trading using opposite Ningbo Fangzheng and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing'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 |
| Changjiang Publishing vs. Kailong High Technology | Changjiang Publishing vs. Beijing Jiaman Dress | Changjiang Publishing vs. Heren Health Co | Changjiang Publishing vs. Shandong Sinoglory Health |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |