Correlation Between Ningbo Fangzheng and Qi An
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Qi An Xin, you can compare the effects of market volatilities on Ningbo Fangzheng and Qi An 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 Qi An. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Qi An.
Diversification Opportunities for Ningbo Fangzheng and Qi An
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and 688561 is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Qi An Xin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qi An Xin 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 Qi An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qi An Xin has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Qi An go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Qi An
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to generate 1.01 times more return on investment than Qi An. However, Ningbo Fangzheng is 1.01 times more volatile than Qi An Xin. It trades about 0.13 of its potential returns per unit of risk. Qi An Xin is currently generating about -0.15 per unit of risk. If you would invest 1,638 in Ningbo Fangzheng Automobile on September 12, 2024 and sell it today you would earn a total of 130.00 from holding Ningbo Fangzheng Automobile or generate 7.94% 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. Qi An Xin
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Qi An Xin |
Ningbo Fangzheng and Qi An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Qi An
The main advantage of trading using opposite Ningbo Fangzheng and Qi An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Qi An 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 Qi An will offset losses from the drop in Qi An's long position.| Ningbo Fangzheng vs. Lutian Machinery Co | Ningbo Fangzheng vs. PetroChina Co Ltd | Ningbo Fangzheng vs. Bank of China | Ningbo Fangzheng vs. Gansu Jiu Steel |
| Qi An vs. Uroica Mining Safety | Qi An vs. Ningbo Fangzheng Automobile | Qi An vs. Changchun Faway Automobile | Qi An vs. Chengtun Mining Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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