Correlation Between Duzhe Publishing and Ningbo Kangqiang
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By analyzing existing cross correlation between Duzhe Publishing Media and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Duzhe Publishing 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 Duzhe Publishing with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Ningbo Kangqiang.
Diversification Opportunities for Duzhe Publishing and Ningbo Kangqiang
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Duzhe and Ningbo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media 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 Duzhe Publishing 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 Duzhe Publishing Media 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 Duzhe Publishing i.e., Duzhe Publishing and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Ningbo Kangqiang
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to generate 0.97 times more return on investment than Ningbo Kangqiang. However, Duzhe Publishing Media is 1.03 times less risky than Ningbo Kangqiang. It trades about 0.02 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.02 per unit of risk. If you would invest 639.00 in Duzhe Publishing Media on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Duzhe Publishing Media or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.71% |
| Values | Daily Returns |
Duzhe Publishing Media vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Duzhe Publishing Media |
| Ningbo Kangqiang Ele |
Duzhe Publishing and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duzhe Publishing and Ningbo Kangqiang
The main advantage of trading using opposite Duzhe Publishing and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing 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.| Duzhe Publishing vs. Kweichow Moutai Co | Duzhe Publishing vs. Shenzhen Mindray Bio Medical | Duzhe Publishing vs. G bits Network Technology | Duzhe Publishing vs. Beijing Roborock Technology |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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