Correlation Between Ningbo Fujia and Guangdong Jingyi
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Ningbo Fujia and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Guangdong Jingyi.
Diversification Opportunities for Ningbo Fujia and Guangdong Jingyi
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Guangdong is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Guangdong Jingyi
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.14 times more return on investment than Guangdong Jingyi. However, Ningbo Fujia is 1.14 times more volatile than Guangdong Jingyi Metal. It trades about 0.03 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about -0.04 per unit of risk. If you would invest 1,372 in Ningbo Fujia Industrial on October 12, 2024 and sell it today you would earn a total of 76.00 from holding Ningbo Fujia Industrial or generate 5.54% 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. Guangdong Jingyi Metal
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Guangdong Jingyi Metal |
Ningbo Fujia and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Guangdong Jingyi
The main advantage of trading using opposite Ningbo Fujia and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi'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 |
| Guangdong Jingyi vs. Heren Health Co | Guangdong Jingyi vs. Jiugui Liquor Co | Guangdong Jingyi vs. Hangzhou Minsheng Healthcare | Guangdong Jingyi vs. Shandong Sinoglory Health |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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