Correlation Between Ningbo Fujia and Soyea Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Fujia Industrial and Soyea Technology Co, you can compare the effects of market volatilities on Ningbo Fujia and Soyea Technology 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 Fujia with a short position of Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Soyea Technology.
Diversification Opportunities for Ningbo Fujia and Soyea Technology
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Soyea is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology and Ningbo Fujia 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 Fujia Industrial are associated (or correlated) with Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Soyea Technology go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Soyea Technology
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.24 times more return on investment than Soyea Technology. However, Ningbo Fujia is 1.24 times more volatile than Soyea Technology Co. It trades about 0.03 of its potential returns per unit of risk. Soyea Technology Co is currently generating about -0.04 per unit of risk. If you would invest 1,268 in Ningbo Fujia Industrial on October 29, 2024 and sell it today you would earn a total of 238.00 from holding Ningbo Fujia Industrial or generate 18.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Soyea Technology Co
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Soyea Technology |
Ningbo Fujia and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Soyea Technology
The main advantage of trading using opposite Ningbo Fujia and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| Ningbo Fujia vs. Jinling Hotel Corp | Ningbo Fujia vs. Chengtun Mining Group | Ningbo Fujia vs. Capitalonline Data Service | Ningbo Fujia vs. Gansu Huangtai Wine marketing |
| Soyea Technology vs. Malion New Materials | Soyea Technology vs. Guangzhou Automobile Group | Soyea Technology vs. CIMC Vehicles Co | Soyea Technology vs. Zhejiang Qianjiang Motorcycle |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Transaction History View history of all your transactions and understand their impact on performance |