Correlation Between Ningbo Fujia and Shandong Gold
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Shandong Gold Mining, you can compare the effects of market volatilities on Ningbo Fujia and Shandong Gold 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 Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Shandong Gold.
Diversification Opportunities for Ningbo Fujia and Shandong Gold
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Shandong is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Shandong Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Gold Mining 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 Shandong Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Gold Mining has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Shandong Gold go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Shandong Gold
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.8 times more return on investment than Shandong Gold. However, Ningbo Fujia is 1.8 times more volatile than Shandong Gold Mining. It trades about 0.02 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about -0.05 per unit of risk. If you would invest 1,450 in Ningbo Fujia Industrial on October 26, 2024 and sell it today you would earn a total of 47.00 from holding Ningbo Fujia Industrial or generate 3.24% 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. Shandong Gold Mining
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Shandong Gold Mining |
Ningbo Fujia and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Shandong Gold
The main advantage of trading using opposite Ningbo Fujia and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Shandong Gold 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 Shandong Gold will offset losses from the drop in Shandong Gold's long position.| Ningbo Fujia vs. Cloud Live Technology | Ningbo Fujia vs. Nanjing Putian Telecommunications | Ningbo Fujia vs. Shenzhen Coship Electronics | Ningbo Fujia vs. Shenzhen Hifuture Electric |
| Shandong Gold vs. Easyhome New Retail | Shandong Gold vs. AUPU Home Style | Shandong Gold vs. Ningbo Fujia Industrial | Shandong Gold vs. Xinjiang Baodi Mining |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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