Correlation Between Ningbo Fujia and Ningbo Tech
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Ningbo Fujia and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Ningbo Tech.
Diversification Opportunities for Ningbo Fujia and Ningbo Tech
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Ningbo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Ningbo Tech go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Ningbo Tech
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.38 times more return on investment than Ningbo Tech. However, Ningbo Fujia is 1.38 times more volatile than Ningbo Tech Bank Co. It trades about 0.08 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about 0.1 per unit of risk. If you would invest 1,289 in Ningbo Fujia Industrial on October 26, 2024 and sell it today you would earn a total of 208.00 from holding Ningbo Fujia Industrial or generate 16.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Ningbo Tech Bank |
Ningbo Fujia and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Ningbo Tech
The main advantage of trading using opposite Ningbo Fujia and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Ningbo Tech 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 Tech will offset losses from the drop in Ningbo Tech's long position.| Ningbo Fujia vs. Cloud Live Technology | Ningbo Fujia vs. Nanjing Putian Telecommunications | Ningbo Fujia vs. Shenzhen Coship Electronics | Ningbo Fujia vs. Shenzhen Hifuture Electric |
| Ningbo Tech vs. Industrial and Commercial | Ningbo Tech vs. Kweichow Moutai Co | Ningbo Tech vs. Agricultural Bank of | Ningbo Tech vs. China Mobile Limited |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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