Correlation Between Dongxing Sec and Ningbo Construction
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By analyzing existing cross correlation between Dongxing Sec Co and Ningbo Construction Co, you can compare the effects of market volatilities on Dongxing Sec and Ningbo Construction 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 Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and Ningbo Construction.
Diversification Opportunities for Dongxing Sec and Ningbo Construction
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongxing and Ningbo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec Co and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Dongxing Sec i.e., Dongxing Sec and Ningbo Construction go up and down completely randomly.
Pair Corralation between Dongxing Sec and Ningbo Construction
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.93 times more return on investment than Ningbo Construction. However, Dongxing Sec Co is 1.07 times less risky than Ningbo Construction. It trades about 0.06 of its potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.04 per unit of risk. If you would invest 884.00 in Dongxing Sec Co on September 4, 2024 and sell it today you would earn a total of 266.00 from holding Dongxing Sec Co or generate 30.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. Ningbo Construction Co
Performance |
| Timeline |
| Dongxing Sec |
| Ningbo Construction |
Dongxing Sec and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and Ningbo Construction
The main advantage of trading using opposite Dongxing Sec and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec position performs unexpectedly, Ningbo Construction 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 Construction will offset losses from the drop in Ningbo Construction's long position.| Dongxing Sec vs. Rising Nonferrous Metals | Dongxing Sec vs. Ye Chiu Metal | Dongxing Sec vs. Guangdong Jingyi Metal | Dongxing Sec vs. GRINM Semiconductor Materials |
| Ningbo Construction vs. China Life Insurance | Ningbo Construction vs. Cinda Securities Co | Ningbo Construction vs. Piotech Inc A | Ningbo Construction 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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