Correlation Between Ningbo Homelink and Jiangsu Seagull
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By analyzing existing cross correlation between Ningbo Homelink Eco iTech and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Ningbo Homelink and Jiangsu Seagull 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 Homelink with a short position of Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Homelink and Jiangsu Seagull.
Diversification Opportunities for Ningbo Homelink and Jiangsu Seagull
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Jiangsu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Homelink Eco iTech and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling and Ningbo Homelink 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 Homelink Eco iTech are associated (or correlated) with Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Ningbo Homelink i.e., Ningbo Homelink and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Ningbo Homelink and Jiangsu Seagull
Assuming the 90 days trading horizon Ningbo Homelink Eco iTech is expected to generate 1.08 times more return on investment than Jiangsu Seagull. However, Ningbo Homelink is 1.08 times more volatile than Jiangsu Seagull Cooling. It trades about 0.19 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.02 per unit of risk. If you would invest 1,564 in Ningbo Homelink Eco iTech on September 4, 2024 and sell it today you would earn a total of 181.00 from holding Ningbo Homelink Eco iTech or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Homelink Eco iTech vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Ningbo Homelink Eco |
| Jiangsu Seagull Cooling |
Ningbo Homelink and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Homelink and Jiangsu Seagull
The main advantage of trading using opposite Ningbo Homelink and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Homelink position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Ningbo Homelink vs. Haima Automobile Group | Ningbo Homelink vs. Ningbo Fangzheng Automobile | Ningbo Homelink vs. Huasi Agricultural Development | Ningbo Homelink vs. Guangdong Advertising Co |
| Jiangsu Seagull vs. Zhejiang Publishing Media | Jiangsu Seagull vs. Jiahe Foods Industry | Jiangsu Seagull vs. Guilin Seamild Foods | Jiangsu Seagull vs. Youyou Foods 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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