Correlation Between Fujian Nanwang and Ningbo Ligong
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By analyzing existing cross correlation between Fujian Nanwang Environment and Ningbo Ligong Online, you can compare the effects of market volatilities on Fujian Nanwang and Ningbo Ligong 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 Fujian Nanwang with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Ningbo Ligong.
Diversification Opportunities for Fujian Nanwang and Ningbo Ligong
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fujian and Ningbo is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and Fujian Nanwang 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 Fujian Nanwang Environment are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Ningbo Ligong
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to generate 1.02 times more return on investment than Ningbo Ligong. However, Fujian Nanwang is 1.02 times more volatile than Ningbo Ligong Online. It trades about 0.11 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.04 per unit of risk. If you would invest 963.00 in Fujian Nanwang Environment on October 18, 2024 and sell it today you would earn a total of 247.00 from holding Fujian Nanwang Environment or generate 25.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Ningbo Ligong Online
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Ningbo Ligong Online |
Fujian Nanwang and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Ningbo Ligong
The main advantage of trading using opposite Fujian Nanwang and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Fujian Nanwang vs. Kuangda Technology Group | Fujian Nanwang vs. Tianjin Ruixin Technology | Fujian Nanwang vs. Guangdong Xiongsu Technology | Fujian Nanwang vs. Keeson Technology Corp |
| Ningbo Ligong vs. Anyang Iron Steel | Ningbo Ligong vs. GreenTech Environmental Co | Ningbo Ligong vs. Fujian Nanwang Environment | Ningbo Ligong vs. Ping An Insurance |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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