Correlation Between Ningbo Fangzheng and Ming Yang
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Ming Yang Smart, you can compare the effects of market volatilities on Ningbo Fangzheng and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Ming Yang.
Diversification Opportunities for Ningbo Fangzheng and Ming Yang
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Ming is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Ming Yang go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Ming Yang
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to generate 1.22 times more return on investment than Ming Yang. However, Ningbo Fangzheng is 1.22 times more volatile than Ming Yang Smart. It trades about -0.31 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.64 per unit of risk. If you would invest 1,797 in Ningbo Fangzheng Automobile on October 13, 2024 and sell it today you would lose (323.00) from holding Ningbo Fangzheng Automobile or give up 17.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Ming Yang Smart
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Ming Yang Smart |
Ningbo Fangzheng and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Ming Yang
The main advantage of trading using opposite Ningbo Fangzheng and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| Ningbo Fangzheng vs. JCHX Mining Management | Ningbo Fangzheng vs. Shannon Semiconductor Technology | Ningbo Fangzheng vs. Youngy Health Co | Ningbo Fangzheng vs. Ingenic Semiconductor |
| Ming Yang vs. State Grid InformationCommunication | Ming Yang vs. Shenzhen Glory Medical | Ming Yang vs. Guangdong Transtek Medical | Ming Yang vs. Xiangyu Medical Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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