Correlation Between Ningbo Jintian and Chongqing Changan
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By analyzing existing cross correlation between Ningbo Jintian Copper and Chongqing Changan Automobile, you can compare the effects of market volatilities on Ningbo Jintian and Chongqing Changan 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 Jintian with a short position of Chongqing Changan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Chongqing Changan.
Diversification Opportunities for Ningbo Jintian and Chongqing Changan
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Chongqing is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper and Chongqing Changan Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Changan and Ningbo Jintian 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 Jintian Copper are associated (or correlated) with Chongqing Changan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Changan has no effect on the direction of Ningbo Jintian i.e., Ningbo Jintian and Chongqing Changan go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Chongqing Changan
Assuming the 90 days trading horizon Ningbo Jintian Copper is expected to generate 1.21 times more return on investment than Chongqing Changan. However, Ningbo Jintian is 1.21 times more volatile than Chongqing Changan Automobile. It trades about -0.08 of its potential returns per unit of risk. Chongqing Changan Automobile is currently generating about -0.31 per unit of risk. If you would invest 627.00 in Ningbo Jintian Copper on October 28, 2024 and sell it today you would lose (19.00) from holding Ningbo Jintian Copper or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. Chongqing Changan Automobile
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Chongqing Changan |
Ningbo Jintian and Chongqing Changan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Chongqing Changan
The main advantage of trading using opposite Ningbo Jintian and Chongqing Changan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian position performs unexpectedly, Chongqing Changan 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 Chongqing Changan will offset losses from the drop in Chongqing Changan's long position.| Ningbo Jintian vs. Dhc Software Co | Ningbo Jintian vs. Heilongjiang Transport Development | Ningbo Jintian vs. Shenzhen Urban Transport | Ningbo Jintian vs. Kuang Chi Technologies |
| Chongqing Changan vs. Wintao Communications Co | Chongqing Changan vs. FSPG Hi Tech Co | Chongqing Changan vs. Tianjin Hi Tech Development | Chongqing Changan vs. Zijin Mining Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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