Correlation Between Ningbo Fujia and Ingenic Semiconductor
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Ingenic Semiconductor, you can compare the effects of market volatilities on Ningbo Fujia and Ingenic Semiconductor 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 Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Ingenic Semiconductor.
Diversification Opportunities for Ningbo Fujia and Ingenic Semiconductor
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Ingenic is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor 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 Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Ingenic Semiconductor
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.46 times more return on investment than Ingenic Semiconductor. However, Ningbo Fujia is 1.46 times more volatile than Ingenic Semiconductor. It trades about 0.06 of its potential returns per unit of risk. Ingenic Semiconductor is currently generating about 0.01 per unit of risk. If you would invest 1,432 in Ningbo Fujia Industrial on November 3, 2024 and sell it today you would earn a total of 43.00 from holding Ningbo Fujia Industrial or generate 3.0% 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. Ingenic Semiconductor
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Ingenic Semiconductor |
Ningbo Fujia and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Ingenic Semiconductor
The main advantage of trading using opposite Ningbo Fujia and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Ingenic Semiconductor 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.| Ningbo Fujia vs. Western Metal Materials | Ningbo Fujia vs. Capitalonline Data Service | Ningbo Fujia vs. Tibet Huayu Mining | Ningbo Fujia vs. Bohai Leasing Co |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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