Correlation Between China Asset and Ningxia Building
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By analyzing existing cross correlation between China Asset Management and Ningxia Building Materials, you can compare the effects of market volatilities on China Asset and Ningxia Building 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 China Asset with a short position of Ningxia Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Ningxia Building.
Diversification Opportunities for China Asset and Ningxia Building
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Ningxia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Ningxia Building Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Building Mat and China Asset 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 China Asset Management are associated (or correlated) with Ningxia Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Building Mat has no effect on the direction of China Asset i.e., China Asset and Ningxia Building go up and down completely randomly.
Pair Corralation between China Asset and Ningxia Building
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.26 times more return on investment than Ningxia Building. However, China Asset Management is 3.79 times less risky than Ningxia Building. It trades about 0.09 of its potential returns per unit of risk. Ningxia Building Materials is currently generating about 0.02 per unit of risk. If you would invest 266.00 in China Asset Management on October 16, 2024 and sell it today you would earn a total of 107.00 from holding China Asset Management or generate 40.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Ningxia Building Materials
Performance |
| Timeline |
| China Asset Management |
| Ningxia Building Mat |
China Asset and Ningxia Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Ningxia Building
The main advantage of trading using opposite China Asset and Ningxia Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Ningxia Building 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 Ningxia Building will offset losses from the drop in Ningxia Building's long position.| China Asset vs. Zhejiang Construction Investment | China Asset vs. Heren Health Co | China Asset vs. Cultural Investment Holdings | China Asset vs. Shenzhen Centralcon Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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