Correlation Between Ningbo Fangzheng and China Everbright
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and China Everbright Bank, you can compare the effects of market volatilities on Ningbo Fangzheng and China Everbright 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 China Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and China Everbright.
Diversification Opportunities for Ningbo Fangzheng and China Everbright
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright Bank 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 China Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and China Everbright go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and China Everbright
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the China Everbright. In addition to that, Ningbo Fangzheng is 2.68 times more volatile than China Everbright Bank. It trades about -0.02 of its total potential returns per unit of risk. China Everbright Bank is currently generating about 0.08 per unit of volatility. If you would invest 292.00 in China Everbright Bank on September 14, 2024 and sell it today you would earn a total of 86.00 from holding China Everbright Bank or generate 29.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. China Everbright Bank
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| China Everbright Bank |
Ningbo Fangzheng and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and China Everbright
The main advantage of trading using opposite Ningbo Fangzheng and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, China Everbright 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 China Everbright will offset losses from the drop in China Everbright's long position.| Ningbo Fangzheng vs. BeiGene | Ningbo Fangzheng vs. Kweichow Moutai Co | Ningbo Fangzheng vs. Beijing Roborock Technology | Ningbo Fangzheng vs. G bits Network Technology |
| China Everbright vs. CIMC Vehicles Co | China Everbright vs. Zhejiang Qianjiang Motorcycle | China Everbright vs. Shenzhen Bioeasy Biotechnology | China Everbright vs. Ningbo Fangzheng Automobile |
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 CEOs Directory module to screen CEOs from public companies around the world.
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