Correlation Between Ningbo Fujia and Jiangxi Sunshine
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Jiangxi Sunshine Dairy, you can compare the effects of market volatilities on Ningbo Fujia and Jiangxi Sunshine 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 Jiangxi Sunshine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Jiangxi Sunshine.
Diversification Opportunities for Ningbo Fujia and Jiangxi Sunshine
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ningbo and Jiangxi is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Jiangxi Sunshine Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Sunshine Dairy 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 Jiangxi Sunshine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Sunshine Dairy has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Jiangxi Sunshine go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Jiangxi Sunshine
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.41 times more return on investment than Jiangxi Sunshine. However, Ningbo Fujia is 1.41 times more volatile than Jiangxi Sunshine Dairy. It trades about 0.1 of its potential returns per unit of risk. Jiangxi Sunshine Dairy is currently generating about 0.01 per unit of risk. If you would invest 1,284 in Ningbo Fujia Industrial on October 24, 2024 and sell it today you would earn a total of 271.00 from holding Ningbo Fujia Industrial or generate 21.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Jiangxi Sunshine Dairy
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Jiangxi Sunshine Dairy |
Ningbo Fujia and Jiangxi Sunshine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Jiangxi Sunshine
The main advantage of trading using opposite Ningbo Fujia and Jiangxi Sunshine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Jiangxi Sunshine 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 Jiangxi Sunshine will offset losses from the drop in Jiangxi Sunshine's long position.| Ningbo Fujia vs. Jinxiandai Information Industry | Ningbo Fujia vs. Peoples Insurance of | Ningbo Fujia vs. Xiamen Bank Co | Ningbo Fujia vs. Zhuhai Comleader Information |
| Jiangxi Sunshine vs. Gem Year Industrial Co | Jiangxi Sunshine vs. Ningbo Fujia Industrial | Jiangxi Sunshine vs. Guangzhou Haozhi Industrial | Jiangxi Sunshine vs. Guocheng Mining 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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