Correlation Between Shandong Publishing and Ningbo Jintian
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By analyzing existing cross correlation between Shandong Publishing Media and Ningbo Jintian Copper, you can compare the effects of market volatilities on Shandong Publishing and Ningbo Jintian 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 Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and Ningbo Jintian.
Diversification Opportunities for Shandong Publishing and Ningbo Jintian
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shandong and Ningbo is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Shandong Publishing i.e., Shandong Publishing and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Shandong Publishing and Ningbo Jintian
Assuming the 90 days trading horizon Shandong Publishing is expected to generate 198.33 times less return on investment than Ningbo Jintian. But when comparing it to its historical volatility, Shandong Publishing Media is 1.1 times less risky than Ningbo Jintian. It trades about 0.0 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 569.00 in Ningbo Jintian Copper on September 1, 2024 and sell it today you would earn a total of 29.00 from holding Ningbo Jintian Copper or generate 5.1% 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 Jintian Copper
Performance |
| Timeline |
| Shandong Publishing Media |
| Ningbo Jintian Copper |
Shandong Publishing and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and Ningbo Jintian
The main advantage of trading using opposite Shandong Publishing and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing position performs unexpectedly, Ningbo Jintian 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 Jintian will offset losses from the drop in Ningbo Jintian's long position.| Shandong Publishing vs. Cambricon Technologies Corp | Shandong Publishing vs. Loongson Technology Corp | Shandong Publishing vs. Shenzhen Fortune Trend | Shandong Publishing vs. Chongqing Road Bridge |
| Ningbo Jintian vs. Zijin Mining Group | Ningbo Jintian vs. Wanhua Chemical Group | Ningbo Jintian vs. Baoshan Iron Steel | Ningbo Jintian vs. Shandong Gold Mining |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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