Correlation Between Ningbo Fujia and Guangzhou Jinyi
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Ningbo Fujia and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Guangzhou Jinyi.
Diversification Opportunities for Ningbo Fujia and Guangzhou Jinyi
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Guangzhou is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Guangzhou Jinyi
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.0 times more return on investment than Guangzhou Jinyi. However, Ningbo Fujia is 1.0 times more volatile than Guangzhou Jinyi Media. It trades about 0.1 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about -0.29 per unit of risk. If you would invest 1,393 in Ningbo Fujia Industrial on October 17, 2024 and sell it today you would earn a total of 103.00 from holding Ningbo Fujia Industrial or generate 7.39% 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. Guangzhou Jinyi Media
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Guangzhou Jinyi Media |
Ningbo Fujia and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Guangzhou Jinyi
The main advantage of trading using opposite Ningbo Fujia and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Ningbo Fujia vs. Xinjiang Baodi Mining | Ningbo Fujia vs. Shengda Mining Co | Ningbo Fujia vs. Shandong Longquan Pipeline | Ningbo Fujia vs. Shenyang Blue Silver |
| Guangzhou Jinyi vs. Eastern Communications Co | Guangzhou Jinyi vs. Runjian Communication Co | Guangzhou Jinyi vs. Anhui Jinhe Industrial | Guangzhou Jinyi vs. Ningbo Fujia Industrial |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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