Correlation Between Ningbo Fujia and Anhui Jinhe
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Anhui Jinhe Industrial, you can compare the effects of market volatilities on Ningbo Fujia and Anhui Jinhe 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 Anhui Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Anhui Jinhe.
Diversification Opportunities for Ningbo Fujia and Anhui Jinhe
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Anhui is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial 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 Anhui Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Anhui Jinhe go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Anhui Jinhe
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 2.13 times more return on investment than Anhui Jinhe. However, Ningbo Fujia is 2.13 times more volatile than Anhui Jinhe Industrial. It trades about 0.0 of its potential returns per unit of risk. Anhui Jinhe Industrial is currently generating about -0.02 per unit of risk. If you would invest 1,458 in Ningbo Fujia Industrial on October 12, 2024 and sell it today you would lose (10.00) from holding Ningbo Fujia Industrial or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Anhui Jinhe Industrial
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Anhui Jinhe Industrial |
Ningbo Fujia and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Anhui Jinhe
The main advantage of trading using opposite Ningbo Fujia and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Anhui Jinhe 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 Anhui Jinhe will offset losses from the drop in Anhui Jinhe's long position.| Ningbo Fujia vs. Shanghai Yaoji Playing | Ningbo Fujia vs. Huaxia Fund Management | Ningbo Fujia vs. JCHX Mining Management | Ningbo Fujia vs. CSSC Offshore Marine |
| Anhui Jinhe vs. Chison Medical Technologies | Anhui Jinhe vs. Anhui Gujing Distillery | Anhui Jinhe vs. Guangdong Transtek Medical | Anhui Jinhe vs. Tinavi Medical Technologies |
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.
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