Correlation Between Ningbo Fujia and Wintao Communications
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Wintao Communications Co, you can compare the effects of market volatilities on Ningbo Fujia and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Wintao Communications.
Diversification Opportunities for Ningbo Fujia and Wintao Communications
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Wintao is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Wintao Communications go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Wintao Communications
Assuming the 90 days trading horizon Ningbo Fujia is expected to generate 1.43 times less return on investment than Wintao Communications. In addition to that, Ningbo Fujia is 1.18 times more volatile than Wintao Communications Co. It trades about 0.12 of its total potential returns per unit of risk. Wintao Communications Co is currently generating about 0.21 per unit of volatility. If you would invest 2,003 in Wintao Communications Co on November 6, 2024 and sell it today you would earn a total of 190.00 from holding Wintao Communications Co or generate 9.49% 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. Wintao Communications Co
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Wintao Communications |
Ningbo Fujia and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Wintao Communications
The main advantage of trading using opposite Ningbo Fujia and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Ningbo Fujia vs. Industrial and Commercial | Ningbo Fujia vs. Agricultural Bank of | Ningbo Fujia vs. China Construction Bank | Ningbo Fujia vs. Bank of China |
| Wintao Communications vs. Zhejiang Yongjin Metal | Wintao Communications vs. Dymatic Chemicals | Wintao Communications vs. Miracll Chemicals Co | Wintao Communications vs. Porton Fine Chemicals |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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