Correlation Between Ningbo Fujia and Eastern Communications
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By analyzing existing cross correlation between Ningbo Fujia Industrial and Eastern Communications Co, you can compare the effects of market volatilities on Ningbo Fujia and Eastern 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Eastern Communications.
Diversification Opportunities for Ningbo Fujia and Eastern Communications
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ningbo and Eastern is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Eastern Communications go up and down completely randomly.
Pair Corralation between Ningbo Fujia and Eastern Communications
Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 1.48 times more return on investment than Eastern Communications. However, Ningbo Fujia is 1.48 times more volatile than Eastern Communications Co. It trades about 0.02 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.0 per unit of risk. If you would invest 1,170 in Ningbo Fujia Industrial on October 16, 2024 and sell it today you would earn a total of 164.00 from holding Ningbo Fujia Industrial or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fujia Industrial vs. Eastern Communications Co
Performance |
| Timeline |
| Ningbo Fujia Industrial |
| Eastern Communications |
Ningbo Fujia and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fujia and Eastern Communications
The main advantage of trading using opposite Ningbo Fujia and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Eastern 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Ningbo Fujia vs. Shuhua Sports Co | Ningbo Fujia vs. Heilongjiang Publishing Media | Ningbo Fujia vs. Thinkingdom Media Group | Ningbo Fujia vs. Threes Company Media |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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