Correlation Between Nantong Haixing and Ningbo Kangqiang
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By analyzing existing cross correlation between Nantong Haixing Electronics and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Nantong Haixing and Ningbo Kangqiang 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 Nantong Haixing with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nantong Haixing and Ningbo Kangqiang.
Diversification Opportunities for Nantong Haixing and Ningbo Kangqiang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nantong and Ningbo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nantong Haixing Electronics and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele and Nantong Haixing 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 Nantong Haixing Electronics are associated (or correlated) with Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Nantong Haixing i.e., Nantong Haixing and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Nantong Haixing and Ningbo Kangqiang
Assuming the 90 days trading horizon Nantong Haixing is expected to generate 35.14 times less return on investment than Ningbo Kangqiang. But when comparing it to its historical volatility, Nantong Haixing Electronics is 1.45 times less risky than Ningbo Kangqiang. It trades about 0.0 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,462 in Ningbo Kangqiang Electronics on November 28, 2024 and sell it today you would earn a total of 354.00 from holding Ningbo Kangqiang Electronics or generate 24.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nantong Haixing Electronics vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Nantong Haixing Elec |
| Ningbo Kangqiang Ele |
Nantong Haixing and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nantong Haixing and Ningbo Kangqiang
The main advantage of trading using opposite Nantong Haixing and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nantong Haixing position performs unexpectedly, Ningbo Kangqiang 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 Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Nantong Haixing vs. Guangzhou Seagull Kitchen | Nantong Haixing vs. Zhongyin Babi Food | Nantong Haixing vs. Ligao Foods CoLtd | Nantong Haixing vs. Elite Color Environmental |
| Ningbo Kangqiang vs. Southern PublishingMedia Co | Ningbo Kangqiang vs. Anshan Senyuan Road | Ningbo Kangqiang vs. Wasu Media Holding | Ningbo Kangqiang vs. XiAn Dagang Road |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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