Correlation Between Ningbo Construction and Hunan Mendale
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Construction Co and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Ningbo Construction and Hunan Mendale 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 Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Hunan Mendale.
Diversification Opportunities for Ningbo Construction and Hunan Mendale
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Hunan is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile 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 Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Ningbo Construction i.e., Ningbo Construction and Hunan Mendale go up and down completely randomly.
Pair Corralation between Ningbo Construction and Hunan Mendale
Assuming the 90 days trading horizon Ningbo Construction is expected to generate 10.34 times less return on investment than Hunan Mendale. But when comparing it to its historical volatility, Ningbo Construction Co is 1.29 times less risky than Hunan Mendale. It trades about 0.02 of its potential returns per unit of risk. Hunan Mendale Hometextile is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 223.00 in Hunan Mendale Hometextile on October 15, 2024 and sell it today you would earn a total of 115.00 from holding Hunan Mendale Hometextile or generate 51.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. Hunan Mendale Hometextile
Performance |
| Timeline |
| Ningbo Construction |
| Hunan Mendale Hometextile |
Ningbo Construction and Hunan Mendale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Hunan Mendale
The main advantage of trading using opposite Ningbo Construction and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction position performs unexpectedly, Hunan Mendale 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 Hunan Mendale will offset losses from the drop in Hunan Mendale's long position.The idea behind Ningbo Construction Co and Hunan Mendale Hometextile pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Hunan Mendale vs. China Mobile Limited | Hunan Mendale vs. Marssenger Kitchenware Co | Hunan Mendale vs. Fibocom Wireless | Hunan Mendale vs. Fiberhome Telecommunication Technologies |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |