Correlation Between Ningbo Fujia and CSG Holding
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By analyzing existing cross correlation between Ningbo Fujia Industrial and CSG Holding Co, you can compare the effects of market volatilities on Ningbo Fujia and CSG Holding 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 CSG Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and CSG Holding.
Diversification Opportunities for Ningbo Fujia and CSG Holding
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and CSG is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and CSG Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Holding 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 CSG Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Holding has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and CSG Holding go up and down completely randomly.
Pair Corralation between Ningbo Fujia and CSG Holding
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 2.1 times more return on investment than CSG Holding. However, Ningbo Fujia is 2.1 times more volatile than CSG Holding Co. It trades about 0.02 of its potential returns per unit of risk. CSG Holding Co is currently generating about -0.06 per unit of risk. If you would invest 1,458 in Ningbo Fujia Industrial on November 2, 2024 and sell it today you would earn a total of 17.00 from holding Ningbo Fujia Industrial or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. CSG Holding Co
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| CSG Holding |
Ningbo Fujia and CSG Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and CSG Holding
The main advantage of trading using opposite Ningbo Fujia and CSG Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, CSG Holding 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 CSG Holding will offset losses from the drop in CSG Holding's long position.| Ningbo Fujia vs. Liaoning Chengda Biotechnology | Ningbo Fujia vs. Ningxia Younglight Chemicals | Ningbo Fujia vs. Zhongshan Public Utilities | Ningbo Fujia vs. Shenzhen Noposion Agrochemicals |
| CSG Holding vs. Zhangjiagang Freetrade Science | CSG Holding vs. Qiaoyin Environmental Tech | CSG Holding vs. Guangdong Liantai Environmental | CSG Holding vs. Easyhome New Retail |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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