Correlation Between Sunny Loan and Ningbo GQY
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sunny Loan Top and Ningbo GQY Video, you can compare the effects of market volatilities on Sunny Loan 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 Sunny Loan with a short position of Ningbo GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Ningbo GQY.
Diversification Opportunities for Sunny Loan and Ningbo GQY
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunny and Ningbo is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top 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 Sunny Loan 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 Sunny Loan Top 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 Sunny Loan i.e., Sunny Loan and Ningbo GQY go up and down completely randomly.
Pair Corralation between Sunny Loan and Ningbo GQY
Assuming the 90 days trading horizon Sunny Loan is expected to generate 1.49 times less return on investment than Ningbo GQY. But when comparing it to its historical volatility, Sunny Loan Top is 1.24 times less risky than Ningbo GQY. It trades about 0.16 of its potential returns per unit of risk. Ningbo GQY Video is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 378.00 in Ningbo GQY Video on August 24, 2024 and sell it today you would earn a total of 260.00 from holding Ningbo GQY Video or generate 68.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Ningbo GQY Video
Performance |
| Timeline |
| Sunny Loan Top |
| Ningbo GQY Video |
Sunny Loan and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Ningbo GQY
The main advantage of trading using opposite Sunny Loan and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan 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.| Sunny Loan vs. Shandong Longquan Pipeline | Sunny Loan vs. Holitech Technology Co | Sunny Loan vs. Keli Sensing Technology | Sunny Loan vs. Jiujiang Shanshui Technology |
| Ningbo GQY vs. King Strong New Material | Ningbo GQY vs. Shandong Sanyuan Biotechnology | Ningbo GQY vs. Maccura Biotechnology Co | Ningbo GQY vs. Wuhan Hvsen Biotechnology |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |