Correlation Between Ningbo Fujia and Unisplendour Corp
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Fujia Industrial and Unisplendour Corp, you can compare the effects of market volatilities on Ningbo Fujia and Unisplendour Corp 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 Unisplendour Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Unisplendour Corp.
Diversification Opportunities for Ningbo Fujia and Unisplendour Corp
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Unisplendour is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Unisplendour Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unisplendour Corp 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 Unisplendour Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unisplendour Corp has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Unisplendour Corp go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Unisplendour Corp
Assuming the 90 days trading horizon Ningbo Fujia is expected to generate 2.2 times less return on investment than Unisplendour Corp. In addition to that, Ningbo Fujia is 1.05 times more volatile than Unisplendour Corp. It trades about 0.03 of its total potential returns per unit of risk. Unisplendour Corp is currently generating about 0.06 per unit of volatility. If you would invest 2,021 in Unisplendour Corp on October 12, 2024 and sell it today you would earn a total of 553.00 from holding Unisplendour Corp or generate 27.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Unisplendour Corp
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Unisplendour Corp |
Ningbo Fujia and Unisplendour Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Unisplendour Corp
The main advantage of trading using opposite Ningbo Fujia and Unisplendour Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Unisplendour Corp 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 Unisplendour Corp will offset losses from the drop in Unisplendour Corp's long position.| Ningbo Fujia vs. Hubeiyichang Transportation Group | Ningbo Fujia vs. Fujian Longzhou Transportation | Ningbo Fujia vs. China Minmetals Rare | Ningbo Fujia vs. Hengli Industrial Development |
| Unisplendour Corp vs. China Reform Health | Unisplendour Corp vs. Lotus Health Group | Unisplendour Corp vs. Heilongjiang Transport Development | Unisplendour Corp vs. China Aluminum International |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |