Correlation Between Dongxing Sec and Ningbo Fangzheng
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By analyzing existing cross correlation between Dongxing Sec Co and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Ningbo Fangzheng.
Diversification Opportunities for Dongxing Sec and Ningbo Fangzheng
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dongxing and Ningbo is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Dongxing Sec and Ningbo Fangzheng
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.81 times more return on investment than Ningbo Fangzheng. However, Dongxing Sec Co is 1.23 times less risky than Ningbo Fangzheng. It trades about 0.12 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 797.00 in Dongxing Sec Co on September 27, 2024 and sell it today you would earn a total of 365.00 from holding Dongxing Sec Co or generate 45.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Dongxing Sec |
| Ningbo Fangzheng Aut |
Dongxing Sec and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Ningbo Fangzheng
The main advantage of trading using opposite Dongxing Sec and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Kweichow Moutai Co | Dongxing Sec vs. Contemporary Amperex Technology | Dongxing Sec vs. G bits Network Technology | Dongxing Sec 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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