Correlation Between Ningbo Construction and Fujian Longzhou
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By analyzing existing cross correlation between Ningbo Construction Co and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Ningbo Construction and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Fujian Longzhou.
Diversification Opportunities for Ningbo Construction and Fujian Longzhou
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Fujian is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Ningbo Construction i.e., Ningbo Construction and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Ningbo Construction and Fujian Longzhou
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 0.96 times more return on investment than Fujian Longzhou. However, Ningbo Construction Co is 1.04 times less risky than Fujian Longzhou. It trades about -0.12 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.25 per unit of risk. If you would invest 458.00 in Ningbo Construction Co on October 18, 2024 and sell it today you would lose (43.00) from holding Ningbo Construction Co or give up 9.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Ningbo Construction |
| Fujian Longzhou Tran |
Ningbo Construction and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Fujian Longzhou
The main advantage of trading using opposite Ningbo Construction and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Ningbo Construction vs. Wuhan Yangtze Communication | Ningbo Construction vs. Tongyu Communication | Ningbo Construction vs. Easyhome New Retail | Ningbo Construction vs. Guangxi Wuzhou Communications |
| Fujian Longzhou vs. Gifore Agricultural Machinery | Fujian Longzhou vs. Ningbo Construction Co | Fujian Longzhou vs. Harvest Fund Management | Fujian Longzhou vs. AVIC Fund Management |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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