Correlation Between Rising Nonferrous and Ningbo Fangzheng
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By analyzing existing cross correlation between Rising Nonferrous Metals and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Rising Nonferrous and Ningbo Fangzheng 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 Rising Nonferrous with a short position of Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Ningbo Fangzheng.
Diversification Opportunities for Rising Nonferrous and Ningbo Fangzheng
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rising and Ningbo is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut and Rising Nonferrous 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 Rising Nonferrous Metals are associated (or correlated) with Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Ningbo Fangzheng
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 1.07 times more return on investment than Ningbo Fangzheng. However, Rising Nonferrous is 1.07 times more volatile than Ningbo Fangzheng Automobile. It trades about 0.1 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.08 per unit of risk. If you would invest 2,709 in Rising Nonferrous Metals on November 3, 2024 and sell it today you would earn a total of 129.00 from holding Rising Nonferrous Metals or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Ningbo Fangzheng Aut |
Rising Nonferrous and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Ningbo Fangzheng
The main advantage of trading using opposite Rising Nonferrous and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Ningbo Fangzheng 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 Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Rising Nonferrous vs. Kailong High Technology | Rising Nonferrous vs. XiaMen HongXin Electron tech | Rising Nonferrous vs. Eyebright Medical Technology | Rising Nonferrous vs. Sichuan Hebang Biotechnology |
| Ningbo Fangzheng vs. Hengli Industrial Development | Ningbo Fangzheng vs. Fujian Longzhou Transportation | Ningbo Fangzheng vs. Jiangsu Jinling Sports | Ningbo Fangzheng vs. Anhui Jinhe Industrial |
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 Stocks Directory module to find actively traded stocks across global markets.
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