Correlation Between Ningbo Fangzheng and Sunny Loan
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Sunny Loan Top, you can compare the effects of market volatilities on Ningbo Fangzheng and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Sunny Loan.
Diversification Opportunities for Ningbo Fangzheng and Sunny Loan
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Sunny is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Sunny Loan go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Sunny Loan
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the Sunny Loan. In addition to that, Ningbo Fangzheng is 1.0 times more volatile than Sunny Loan Top. It trades about -0.02 of its total potential returns per unit of risk. Sunny Loan Top is currently generating about 0.05 per unit of volatility. If you would invest 619.00 in Sunny Loan Top on September 26, 2024 and sell it today you would earn a total of 475.00 from holding Sunny Loan Top or generate 76.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Sunny Loan Top
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Sunny Loan Top |
Ningbo Fangzheng and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Sunny Loan
The main advantage of trading using opposite Ningbo Fangzheng and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Ningbo Fangzheng vs. China Life Insurance | Ningbo Fangzheng vs. Cinda Securities Co | Ningbo Fangzheng vs. Piotech Inc A | Ningbo Fangzheng vs. Dongxing Sec Co |
| Sunny Loan vs. China World Trade | Sunny Loan vs. Ningbo Fangzheng Automobile | Sunny Loan vs. Ping An Insurance | Sunny Loan vs. Gansu Huangtai Wine marketing |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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