Correlation Between Changchun Faway and Ningbo GQY
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By analyzing existing cross correlation between Changchun Faway Automobile and Ningbo GQY Video, you can compare the effects of market volatilities on Changchun Faway and Ningbo GQY 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 Changchun Faway with a short position of Ningbo GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and Ningbo GQY.
Diversification Opportunities for Changchun Faway and Ningbo GQY
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Ningbo is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile and Ningbo GQY Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo GQY Video and Changchun Faway 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 Changchun Faway Automobile are associated (or correlated) with Ningbo GQY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo GQY Video has no effect on the direction of Changchun Faway i.e., Changchun Faway and Ningbo GQY go up and down completely randomly.
Pair Corralation between Changchun Faway and Ningbo GQY
Assuming the 90 days trading horizon Changchun Faway is expected to generate 23.07 times less return on investment than Ningbo GQY. But when comparing it to its historical volatility, Changchun Faway Automobile is 2.27 times less risky than Ningbo GQY. It trades about 0.03 of its potential returns per unit of risk. Ningbo GQY Video is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 590.00 in Ningbo GQY Video on September 13, 2024 and sell it today you would earn a total of 215.00 from holding Ningbo GQY Video or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. Ningbo GQY Video
Performance |
| Timeline |
| Changchun Faway Auto |
| Ningbo GQY Video |
Changchun Faway and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and Ningbo GQY
The main advantage of trading using opposite Changchun Faway and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway position performs unexpectedly, Ningbo GQY 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 GQY will offset losses from the drop in Ningbo GQY's long position.| Changchun Faway vs. BeiGene | Changchun Faway vs. Kweichow Moutai Co | Changchun Faway vs. Beijing Roborock Technology | Changchun Faway vs. G bits Network Technology |
| Ningbo GQY vs. Cultural Investment Holdings | Ningbo GQY vs. CICC Fund Management | Ningbo GQY vs. Henan Shuanghui Investment | Ningbo GQY vs. Zhongrun Resources 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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