Correlation Between Jiangsu Zhongtian and Ningbo Fangzheng
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By analyzing existing cross correlation between Jiangsu Zhongtian Technology and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Jiangsu Zhongtian 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 Jiangsu Zhongtian with a short position of Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Zhongtian and Ningbo Fangzheng.
Diversification Opportunities for Jiangsu Zhongtian and Ningbo Fangzheng
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Ningbo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Zhongtian Technology 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 Jiangsu Zhongtian 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 Jiangsu Zhongtian Technology 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 Jiangsu Zhongtian i.e., Jiangsu Zhongtian and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Jiangsu Zhongtian and Ningbo Fangzheng
Assuming the 90 days trading horizon Jiangsu Zhongtian Technology is expected to generate 0.78 times more return on investment than Ningbo Fangzheng. However, Jiangsu Zhongtian Technology is 1.28 times less risky than Ningbo Fangzheng. It trades about 0.0 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.03 per unit of risk. If you would invest 1,553 in Jiangsu Zhongtian Technology on October 16, 2024 and sell it today you would lose (273.00) from holding Jiangsu Zhongtian Technology or give up 17.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Zhongtian Technology vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Jiangsu Zhongtian |
| Ningbo Fangzheng Aut |
Jiangsu Zhongtian and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Zhongtian and Ningbo Fangzheng
The main advantage of trading using opposite Jiangsu Zhongtian and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Zhongtian 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.| Jiangsu Zhongtian vs. Ningbo Fangzheng Automobile | Jiangsu Zhongtian vs. Chongqing Changan Automobile | Jiangsu Zhongtian vs. Thinkingdom Media Group | Jiangsu Zhongtian vs. Heilongjiang Publishing Media |
| Ningbo Fangzheng vs. Ningbo Ligong Online | Ningbo Fangzheng vs. Jiangsu Hoperun Software | Ningbo Fangzheng vs. Anhui Transport Consulting | Ningbo Fangzheng vs. Bingo Software Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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