Correlation Between Ningbo Fujia and Shanghai Yanpu
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Ningbo Fujia and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Shanghai Yanpu.
Diversification Opportunities for Ningbo Fujia and Shanghai Yanpu
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Shanghai is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Shanghai Yanpu
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.78 times more return on investment than Shanghai Yanpu. However, Ningbo Fujia is 1.78 times more volatile than Shanghai Yanpu Metal. It trades about 0.0 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about -0.15 per unit of risk. If you would invest 1,458 in Ningbo Fujia Industrial on October 12, 2024 and sell it today you would lose (10.00) from holding Ningbo Fujia Industrial or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Shanghai Yanpu Metal |
Ningbo Fujia and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Shanghai Yanpu
The main advantage of trading using opposite Ningbo Fujia and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Ningbo Fujia vs. Shanghai Yaoji Playing | Ningbo Fujia vs. Huaxia Fund Management | Ningbo Fujia vs. JCHX Mining Management | Ningbo Fujia vs. CSSC Offshore Marine |
| Shanghai Yanpu vs. Beijing Kingsoft Office | Shanghai Yanpu vs. Fuzhou Rockchip Electronics | Shanghai Yanpu vs. Jinlong Machinery Electronic | Shanghai Yanpu vs. Weihai Honglin Electronic |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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