Correlation Between Jiangsu Yueda and Ningbo Fujia
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Jiangsu Yueda and Ningbo Fujia 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 Yueda with a short position of Ningbo Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Ningbo Fujia.
Diversification Opportunities for Jiangsu Yueda and Ningbo Fujia
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Ningbo is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia Industrial and Jiangsu Yueda 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 Yueda Investment are associated (or correlated) with Ningbo Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Ningbo Fujia
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 1.57 times less return on investment than Ningbo Fujia. But when comparing it to its historical volatility, Jiangsu Yueda Investment is 1.24 times less risky than Ningbo Fujia. It trades about 0.02 of its potential returns per unit of risk. Ningbo Fujia Industrial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,261 in Ningbo Fujia Industrial on October 16, 2024 and sell it today you would earn a total of 73.00 from holding Ningbo Fujia Industrial or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Ningbo Fujia Industrial
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Ningbo Fujia Industrial |
Jiangsu Yueda and Ningbo Fujia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Ningbo Fujia
The main advantage of trading using opposite Jiangsu Yueda and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Ningbo Fujia 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 Fujia will offset losses from the drop in Ningbo Fujia's long position.| Jiangsu Yueda vs. Xiamen Jihong Package | Jiangsu Yueda vs. Hengkang Medical Group | Jiangsu Yueda vs. Nanjing Vishee Medical | Jiangsu Yueda vs. Qingdao Foods Co |
| Ningbo Fujia vs. Jiangsu Yueda Investment | Ningbo Fujia vs. Jiangsu Jinling Sports | Ningbo Fujia vs. Hunan Investment Group | Ningbo Fujia vs. Dazhong Transportation Group |
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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