Correlation Between Cinda Securities and Ningbo Fangzheng
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By analyzing existing cross correlation between Cinda Securities Co and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Cinda Securities and Ningbo Fangzheng 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 Cinda Securities with a short position of Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Ningbo Fangzheng.
Diversification Opportunities for Cinda Securities and Ningbo Fangzheng
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and Ningbo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Cinda Securities i.e., Cinda Securities and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Cinda Securities and Ningbo Fangzheng
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 0.79 times more return on investment than Ningbo Fangzheng. However, Cinda Securities Co is 1.27 times less risky than Ningbo Fangzheng. It trades about 0.04 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.03 per unit of risk. If you would invest 1,418 in Cinda Securities Co on September 27, 2024 and sell it today you would earn a total of 154.00 from holding Cinda Securities Co or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Cinda Securities |
| Ningbo Fangzheng Aut |
Cinda Securities and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Ningbo Fangzheng
The main advantage of trading using opposite Cinda Securities and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Ningbo Fangzheng 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 Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Contemporary Amperex Technology | Cinda Securities vs. G bits Network Technology | Cinda Securities vs. BYD Co Ltd |
| Ningbo Fangzheng vs. China Life Insurance | Ningbo Fangzheng vs. Cinda Securities Co | Ningbo Fangzheng vs. Piotech Inc A | Ningbo Fangzheng vs. Dongxing Sec Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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