Correlation Between Dongnan Electronics and Ningbo Jianan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongnan Electronics Co and Ningbo Jianan Electronics, you can compare the effects of market volatilities on Dongnan Electronics and Ningbo Jianan 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 Dongnan Electronics with a short position of Ningbo Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongnan Electronics and Ningbo Jianan.
Diversification Opportunities for Dongnan Electronics and Ningbo Jianan
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongnan and Ningbo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Dongnan Electronics Co and Ningbo Jianan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jianan Electronics and Dongnan Electronics 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 Dongnan Electronics Co are associated (or correlated) with Ningbo Jianan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jianan Electronics has no effect on the direction of Dongnan Electronics i.e., Dongnan Electronics and Ningbo Jianan go up and down completely randomly.
Pair Corralation between Dongnan Electronics and Ningbo Jianan
Assuming the 90 days trading horizon Dongnan Electronics Co is expected to generate 0.98 times more return on investment than Ningbo Jianan. However, Dongnan Electronics Co is 1.02 times less risky than Ningbo Jianan. It trades about 0.08 of its potential returns per unit of risk. Ningbo Jianan Electronics is currently generating about -0.1 per unit of risk. If you would invest 2,424 in Dongnan Electronics Co on January 26, 2025 and sell it today you would earn a total of 146.00 from holding Dongnan Electronics Co or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongnan Electronics Co vs. Ningbo Jianan Electronics
Performance |
| Timeline |
| Dongnan Electronics |
| Ningbo Jianan Electronics |
Dongnan Electronics and Ningbo Jianan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongnan Electronics and Ningbo Jianan
The main advantage of trading using opposite Dongnan Electronics and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongnan Electronics position performs unexpectedly, Ningbo Jianan 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 Jianan will offset losses from the drop in Ningbo Jianan's long position.| Dongnan Electronics vs. Fujian Nanwang Environment | Dongnan Electronics vs. Elite Color Environmental | Dongnan Electronics vs. Sinocat Environmental Technology | Dongnan Electronics vs. Guilin Seamild Foods |
| Ningbo Jianan vs. Hangzhou Zhongya Machinery | Ningbo Jianan vs. Jiangsu Jinling Sports | Ningbo Jianan vs. Senci Electric Machinery | Ningbo Jianan vs. Xinjiang Communications Construction |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stocks Directory Find actively traded stocks across global markets |