Correlation Between Ningbo Fangzheng and Vohringer Home
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Vohringer Home Technology, you can compare the effects of market volatilities on Ningbo Fangzheng and Vohringer Home 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 Vohringer Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Vohringer Home.
Diversification Opportunities for Ningbo Fangzheng and Vohringer Home
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Vohringer is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Vohringer Home Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vohringer Home Technology 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 Vohringer Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vohringer Home Technology has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Vohringer Home go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Vohringer Home
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the Vohringer Home. In addition to that, Ningbo Fangzheng is 1.08 times more volatile than Vohringer Home Technology. It trades about -0.01 of its total potential returns per unit of risk. Vohringer Home Technology is currently generating about 0.01 per unit of volatility. If you would invest 527.00 in Vohringer Home Technology on September 3, 2024 and sell it today you would lose (32.00) from holding Vohringer Home Technology or give up 6.07% 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. Vohringer Home Technology
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Vohringer Home Technology |
Ningbo Fangzheng and Vohringer Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Vohringer Home
The main advantage of trading using opposite Ningbo Fangzheng and Vohringer Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Vohringer Home 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 Vohringer Home will offset losses from the drop in Vohringer Home's long position.| Ningbo Fangzheng vs. PetroChina Co Ltd | Ningbo Fangzheng vs. China Mobile Limited | Ningbo Fangzheng vs. Industrial and Commercial | Ningbo Fangzheng vs. China Life Insurance |
| Vohringer Home vs. Zijin Mining Group | Vohringer Home vs. Baoshan Iron Steel | Vohringer Home vs. Hoshine Silicon Ind |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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