Correlation Between Thinkingdom Media and Ningbo Fujia
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By analyzing existing cross correlation between Thinkingdom Media Group and Ningbo Fujia Industrial, you can compare the effects of market volatilities on Thinkingdom Media and Ningbo Fujia 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 Thinkingdom Media with a short position of Ningbo Fujia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkingdom Media and Ningbo Fujia.
Diversification Opportunities for Thinkingdom Media and Ningbo Fujia
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thinkingdom and Ningbo is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Thinkingdom Media Group and Ningbo Fujia Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fujia Industrial and Thinkingdom Media 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 Thinkingdom Media Group are associated (or correlated) with Ningbo Fujia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fujia Industrial has no effect on the direction of Thinkingdom Media i.e., Thinkingdom Media and Ningbo Fujia go up and down completely randomly.
Pair Corralation between Thinkingdom Media and Ningbo Fujia
Assuming the 90 days trading horizon Thinkingdom Media Group is expected to under-perform the Ningbo Fujia. In addition to that, Thinkingdom Media is 1.03 times more volatile than Ningbo Fujia Industrial. It trades about -0.08 of its total potential returns per unit of risk. Ningbo Fujia Industrial is currently generating about 0.08 per unit of volatility. If you would invest 1,366 in Ningbo Fujia Industrial on October 30, 2024 and sell it today you would earn a total of 109.00 from holding Ningbo Fujia Industrial or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkingdom Media Group vs. Ningbo Fujia Industrial
Performance |
| Timeline |
| Thinkingdom Media |
| Ningbo Fujia Industrial |
Thinkingdom Media and Ningbo Fujia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkingdom Media and Ningbo Fujia
The main advantage of trading using opposite Thinkingdom Media and Ningbo Fujia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkingdom Media position performs unexpectedly, Ningbo Fujia 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 Fujia will offset losses from the drop in Ningbo Fujia's long position.| Thinkingdom Media vs. Beijing Bewinner Communications | Thinkingdom Media vs. Sunny Loan Top | Thinkingdom Media vs. Jilin Jlu Communication | Thinkingdom Media vs. Songz Automobile Air |
| Ningbo Fujia vs. Nuode Investment Co | Ningbo Fujia vs. Jointo Energy Investment | Ningbo Fujia vs. Southern PublishingMedia Co | Ningbo Fujia vs. Hengdian Entertainment 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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