Correlation Between Shandong Publishing and Ningbo Jianan
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By analyzing existing cross correlation between Shandong Publishing Media and Ningbo Jianan Electronics, you can compare the effects of market volatilities on Shandong Publishing and Ningbo Jianan 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 Shandong Publishing with a short position of Ningbo Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Ningbo Jianan.
Diversification Opportunities for Shandong Publishing and Ningbo Jianan
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and Ningbo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Ningbo Jianan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jianan Electronics and Shandong Publishing 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 Shandong Publishing Media are associated (or correlated) with Ningbo Jianan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jianan Electronics has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Ningbo Jianan go up and down completely randomly.
Pair Corralation between Shandong Publishing and Ningbo Jianan
Assuming the 90 days trading horizon Shandong Publishing is expected to generate 29.16 times less return on investment than Ningbo Jianan. But when comparing it to its historical volatility, Shandong Publishing Media is 1.72 times less risky than Ningbo Jianan. It trades about 0.0 of its potential returns per unit of risk. Ningbo Jianan Electronics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,538 in Ningbo Jianan Electronics on August 25, 2024 and sell it today you would earn a total of 712.00 from holding Ningbo Jianan Electronics or generate 46.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. Ningbo Jianan Electronics
Performance |
| Timeline |
| Shandong Publishing Media |
| Ningbo Jianan Electronics |
Shandong Publishing and Ningbo Jianan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Ningbo Jianan
The main advantage of trading using opposite Shandong Publishing and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Ningbo Jianan 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 Jianan will offset losses from the drop in Ningbo Jianan's long position.| Shandong Publishing vs. China State Construction | Shandong Publishing vs. Huafa Industrial Co | Shandong Publishing vs. China International Capital | Shandong Publishing vs. Kweichow Moutai Co |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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