Correlation Between Servyou Software and Ningbo Fangzheng
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By analyzing existing cross correlation between Servyou Software Group and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Servyou Software and Ningbo Fangzheng 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 Servyou Software with a short position of Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Servyou Software and Ningbo Fangzheng.
Diversification Opportunities for Servyou Software and Ningbo Fangzheng
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Servyou and Ningbo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Servyou Software Group and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut and Servyou Software 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 Servyou Software Group are associated (or correlated) with Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Servyou Software i.e., Servyou Software and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Servyou Software and Ningbo Fangzheng
Assuming the 90 days trading horizon Servyou Software Group is expected to under-perform the Ningbo Fangzheng. But the stock apears to be less risky and, when comparing its historical volatility, Servyou Software Group is 1.17 times less risky than Ningbo Fangzheng. The stock trades about -0.18 of its potential returns per unit of risk. The Ningbo Fangzheng Automobile is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 1,571 in Ningbo Fangzheng Automobile on October 25, 2024 and sell it today you would lose (115.00) from holding Ningbo Fangzheng Automobile or give up 7.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Servyou Software Group vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Servyou Software |
| Ningbo Fangzheng Aut |
Servyou Software and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Servyou Software and Ningbo Fangzheng
The main advantage of trading using opposite Servyou Software and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Servyou Software position performs unexpectedly, Ningbo Fangzheng 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 Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Servyou Software vs. Kweichow Moutai Co | Servyou Software vs. NAURA Technology Group | Servyou Software vs. APT Medical | Servyou Software vs. BYD Co Ltd |
| Ningbo Fangzheng vs. Jahen Household Products | Ningbo Fangzheng vs. Jinsanjiang Silicon Material | Ningbo Fangzheng vs. Xinxiang Chemical Fiber | Ningbo Fangzheng vs. Ningxia Younglight Chemicals |
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 Stocks Directory module to find actively traded stocks across global markets.
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