Correlation Between Ningbo Fujia and Zhongtai Securities
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Zhongtai Securities Co, you can compare the effects of market volatilities on Ningbo Fujia and Zhongtai Securities 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 Zhongtai Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Zhongtai Securities.
Diversification Opportunities for Ningbo Fujia and Zhongtai Securities
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Zhongtai is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Zhongtai Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtai Securities 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 Zhongtai Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtai Securities has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Zhongtai Securities go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Zhongtai Securities
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.82 times more return on investment than Zhongtai Securities. However, Ningbo Fujia is 1.82 times more volatile than Zhongtai Securities Co. It trades about 0.03 of its potential returns per unit of risk. Zhongtai Securities Co is currently generating about -0.01 per unit of risk. If you would invest 1,209 in Ningbo Fujia Industrial on October 25, 2024 and sell it today you would earn a total of 300.00 from holding Ningbo Fujia Industrial or generate 24.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Zhongtai Securities Co
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Zhongtai Securities |
Ningbo Fujia and Zhongtai Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Zhongtai Securities
The main advantage of trading using opposite Ningbo Fujia and Zhongtai Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Zhongtai Securities 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 Zhongtai Securities will offset losses from the drop in Zhongtai Securities' long position.| Ningbo Fujia vs. PetroChina Co Ltd | Ningbo Fujia vs. Gansu Jiu Steel | Ningbo Fujia vs. Ming Yang Smart | Ningbo Fujia vs. Aba Chemicals Corp |
| Zhongtai Securities vs. De Rucci Healthy | Zhongtai Securities vs. Lotus Health Group | Zhongtai Securities vs. Andon Health Co | Zhongtai Securities vs. Shenzhen Centralcon Investment |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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