Correlation Between Ningbo Boway and Fujian Longzhou
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By analyzing existing cross correlation between Ningbo Boway Alloy and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Ningbo Boway and Fujian Longzhou 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 Ningbo Boway with a short position of Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Boway and Fujian Longzhou.
Diversification Opportunities for Ningbo Boway and Fujian Longzhou
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Fujian is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Boway Alloy and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran and Ningbo Boway 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 Ningbo Boway Alloy are associated (or correlated) with Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Ningbo Boway i.e., Ningbo Boway and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Ningbo Boway and Fujian Longzhou
Assuming the 90 days trading horizon Ningbo Boway Alloy is expected to generate 1.45 times more return on investment than Fujian Longzhou. However, Ningbo Boway is 1.45 times more volatile than Fujian Longzhou Transportation. It trades about 0.03 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about 0.01 per unit of risk. If you would invest 1,661 in Ningbo Boway Alloy on September 28, 2024 and sell it today you would earn a total of 340.00 from holding Ningbo Boway Alloy or generate 20.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.95% |
| Values | Daily Returns |
Ningbo Boway Alloy vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Ningbo Boway Alloy |
| Fujian Longzhou Tran |
Ningbo Boway and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Boway and Fujian Longzhou
The main advantage of trading using opposite Ningbo Boway and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Boway position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Ningbo Boway vs. Shanghai Broadband Technology | Ningbo Boway vs. Anhui Huaheng Biotechnology | Ningbo Boway vs. Sichuan Hebang Biotechnology | Ningbo Boway vs. RoadMain T Co |
| Fujian Longzhou vs. Chengdu Kanghua Biological | Fujian Longzhou vs. Beijing Wantai Biological | Fujian Longzhou vs. Suzhou Novoprotein Scientific | Fujian Longzhou vs. Aluminum Corp of |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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