Correlation Between Fuzhou Rockchip and Ningbo Kangqiang
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By analyzing existing cross correlation between Fuzhou Rockchip Electronics and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Fuzhou Rockchip and Ningbo Kangqiang 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 Fuzhou Rockchip with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuzhou Rockchip and Ningbo Kangqiang.
Diversification Opportunities for Fuzhou Rockchip and Ningbo Kangqiang
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fuzhou and Ningbo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Fuzhou Rockchip Electronics and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele and Fuzhou Rockchip 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 Fuzhou Rockchip Electronics are associated (or correlated) with Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Fuzhou Rockchip i.e., Fuzhou Rockchip and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Fuzhou Rockchip and Ningbo Kangqiang
Assuming the 90 days trading horizon Fuzhou Rockchip Electronics is expected to generate 1.28 times more return on investment than Ningbo Kangqiang. However, Fuzhou Rockchip is 1.28 times more volatile than Ningbo Kangqiang Electronics. It trades about 0.28 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.15 per unit of risk. If you would invest 9,393 in Fuzhou Rockchip Electronics on October 12, 2024 and sell it today you would earn a total of 3,475 from holding Fuzhou Rockchip Electronics or generate 37.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuzhou Rockchip Electronics vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Fuzhou Rockchip Elec |
| Ningbo Kangqiang Ele |
Fuzhou Rockchip and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuzhou Rockchip and Ningbo Kangqiang
The main advantage of trading using opposite Fuzhou Rockchip and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuzhou Rockchip position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Fuzhou Rockchip vs. Ye Chiu Metal | Fuzhou Rockchip vs. Duzhe Publishing Media | Fuzhou Rockchip vs. Shuhua Sports Co | Fuzhou Rockchip vs. Jinling Hotel Corp |
| Ningbo Kangqiang vs. Guocheng Mining Co | Ningbo Kangqiang vs. Shenzhen Silver Basis | Ningbo Kangqiang vs. Hainan Mining Co | Ningbo Kangqiang vs. JCHX Mining Management |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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