Correlation Between Ningbo Construction and Guangdong Jingyi
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By analyzing existing cross correlation between Ningbo Construction Co and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Ningbo Construction and Guangdong Jingyi 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 Construction with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Guangdong Jingyi.
Diversification Opportunities for Ningbo Construction and Guangdong Jingyi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Guangdong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Ningbo Construction 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 Construction Co are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Ningbo Construction i.e., Ningbo Construction and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Ningbo Construction and Guangdong Jingyi
Assuming the 90 days trading horizon Ningbo Construction is expected to generate 1.7 times less return on investment than Guangdong Jingyi. In addition to that, Ningbo Construction is 1.57 times more volatile than Guangdong Jingyi Metal. It trades about 0.09 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.25 per unit of volatility. If you would invest 632.00 in Guangdong Jingyi Metal on August 29, 2024 and sell it today you would earn a total of 94.00 from holding Guangdong Jingyi Metal or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Ningbo Construction |
| Guangdong Jingyi Metal |
Ningbo Construction and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Guangdong Jingyi
The main advantage of trading using opposite Ningbo Construction and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Ningbo Construction vs. Ming Yang Smart | Ningbo Construction vs. 159681 | Ningbo Construction vs. 159005 | Ningbo Construction vs. Loctek Ergonomic Technology |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical 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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