Correlation Between Guangxi Wuzhou and Ningbo Construction
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Ningbo Construction Co, you can compare the effects of market volatilities on Guangxi Wuzhou and Ningbo Construction 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 Guangxi Wuzhou with a short position of Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Ningbo Construction.
Diversification Opportunities for Guangxi Wuzhou and Ningbo Construction
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangxi and Ningbo is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction and Guangxi Wuzhou 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 Guangxi Wuzhou Communications are associated (or correlated) with Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Ningbo Construction go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Ningbo Construction
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.9 times more return on investment than Ningbo Construction. However, Guangxi Wuzhou Communications is 1.11 times less risky than Ningbo Construction. It trades about 0.04 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.01 per unit of risk. If you would invest 342.00 in Guangxi Wuzhou Communications on October 18, 2024 and sell it today you would earn a total of 110.00 from holding Guangxi Wuzhou Communications or generate 32.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Ningbo Construction Co
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Ningbo Construction |
Guangxi Wuzhou and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Ningbo Construction
The main advantage of trading using opposite Guangxi Wuzhou and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Ningbo Construction 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 Construction will offset losses from the drop in Ningbo Construction's long position.| Guangxi Wuzhou vs. Xinjiang Beixin RoadBridge | Guangxi Wuzhou vs. Shanghai Broadband Technology | Guangxi Wuzhou vs. Hunan TV Broadcast | Guangxi Wuzhou vs. Guizhou BroadcastingTV Info |
| Ningbo Construction vs. Wuhan Yangtze Communication | Ningbo Construction vs. Tongyu Communication | Ningbo Construction vs. Easyhome New Retail | Ningbo Construction vs. Guangxi Wuzhou Communications |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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