Correlation Between Industrial and Ningbo Fangzheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Industrial and Commercial and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Ningbo Fangzheng.
Diversification Opportunities for Industrial and Ningbo Fangzheng
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and Ningbo is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Industrial and Ningbo Fangzheng
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.38 times more return on investment than Ningbo Fangzheng. However, Industrial and Commercial is 2.61 times less risky than Ningbo Fangzheng. It trades about 0.08 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.01 per unit of risk. If you would invest 402.00 in Industrial and Commercial on September 4, 2024 and sell it today you would earn a total of 211.00 from holding Industrial and Commercial or generate 52.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Industrial and Commercial |
| Ningbo Fangzheng Aut |
Industrial and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Ningbo Fangzheng
The main advantage of trading using opposite Industrial and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. China Life Insurance | Industrial vs. Shenzhen MYS Environmental | Industrial vs. Anhui Fuhuang Steel | Industrial vs. China Sports Industry |
| Ningbo Fangzheng vs. Great Sun Foods Co | Ningbo Fangzheng vs. Heilongjiang Transport Development | Ningbo Fangzheng vs. Youyou Foods Co | Ningbo Fangzheng vs. Anji Foodstuff 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |