Correlation Between Dongfeng Automobile and Ningbo Jianan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dongfeng Automobile Co and Ningbo Jianan Electronics, you can compare the effects of market volatilities on Dongfeng Automobile 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 Dongfeng Automobile with a short position of Ningbo Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongfeng Automobile and Ningbo Jianan.
Diversification Opportunities for Dongfeng Automobile and Ningbo Jianan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongfeng and Ningbo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Dongfeng Automobile 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 Dongfeng Automobile 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 Dongfeng Automobile 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 Dongfeng Automobile i.e., Dongfeng Automobile and Ningbo Jianan go up and down completely randomly.
Pair Corralation between Dongfeng Automobile and Ningbo Jianan
Assuming the 90 days trading horizon Dongfeng Automobile is expected to generate 1.83 times less return on investment than Ningbo Jianan. But when comparing it to its historical volatility, Dongfeng Automobile Co is 1.27 times less risky than Ningbo Jianan. It trades about 0.04 of its potential returns per unit of risk. Ningbo Jianan Electronics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,971 in Ningbo Jianan Electronics on August 31, 2024 and sell it today you would earn a total of 415.00 from holding Ningbo Jianan Electronics or generate 21.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongfeng Automobile Co vs. Ningbo Jianan Electronics
Performance |
| Timeline |
| Dongfeng Automobile |
| Ningbo Jianan Electronics |
Dongfeng Automobile and Ningbo Jianan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongfeng Automobile and Ningbo Jianan
The main advantage of trading using opposite Dongfeng Automobile and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongfeng Automobile 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.| Dongfeng Automobile vs. By health | Dongfeng Automobile vs. Zhejiang Construction Investment | Dongfeng Automobile vs. De Rucci Healthy | Dongfeng Automobile vs. Chengdu Xingrong Investment |
| Ningbo Jianan vs. Xiangyang Automobile Bearing | Ningbo Jianan vs. Anhui Jianghuai Automobile | Ningbo Jianan vs. Changjiang Publishing Media | Ningbo Jianan vs. Guangdong Shenglu Telecommunication |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |