Correlation Between Ningbo Fangzheng and Servyou Software
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Servyou Software Group, you can compare the effects of market volatilities on Ningbo Fangzheng and Servyou Software 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 Servyou Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Servyou Software.
Diversification Opportunities for Ningbo Fangzheng and Servyou Software
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Servyou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Servyou Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Servyou Software 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 Servyou Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Servyou Software has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Servyou Software go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Servyou Software
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the Servyou Software. In addition to that, Ningbo Fangzheng is 1.15 times more volatile than Servyou Software Group. It trades about -0.16 of its total potential returns per unit of risk. Servyou Software Group is currently generating about -0.17 per unit of volatility. If you would invest 3,177 in Servyou Software Group on October 18, 2024 and sell it today you would lose (328.00) from holding Servyou Software Group or give up 10.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Servyou Software Group
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Servyou Software |
Ningbo Fangzheng and Servyou Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Servyou Software
The main advantage of trading using opposite Ningbo Fangzheng and Servyou Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Servyou Software 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 Servyou Software will offset losses from the drop in Servyou Software's long position.| Ningbo Fangzheng vs. Guangdong Marubi Biotechnology | Ningbo Fangzheng vs. Keeson Technology Corp | Ningbo Fangzheng vs. Eyebright Medical Technology | Ningbo Fangzheng vs. Hubei Forbon Technology |
| Servyou Software vs. Touchstone International Medical | Servyou Software vs. Ningbo Fangzheng Automobile | Servyou Software vs. Tinavi Medical Technologies | Servyou Software vs. Songz Automobile Air |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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