Correlation Between Allied Machinery and Ningbo Fangzheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Allied Machinery Co and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Allied Machinery and Ningbo Fangzheng 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 Allied Machinery with a short position of Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Ningbo Fangzheng.
Diversification Opportunities for Allied Machinery and Ningbo Fangzheng
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allied and Ningbo is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery Co and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut and Allied Machinery 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 Allied Machinery Co are associated (or correlated) with Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Allied Machinery i.e., Allied Machinery and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Allied Machinery and Ningbo Fangzheng
Assuming the 90 days trading horizon Allied Machinery Co is expected to generate 1.73 times more return on investment than Ningbo Fangzheng. However, Allied Machinery is 1.73 times more volatile than Ningbo Fangzheng Automobile. It trades about 0.15 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about -0.27 per unit of risk. If you would invest 1,645 in Allied Machinery Co on October 15, 2024 and sell it today you would earn a total of 224.00 from holding Allied Machinery Co or generate 13.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Machinery Co vs. Ningbo Fangzheng Automobile
Performance |
| Timeline |
| Allied Machinery |
| Ningbo Fangzheng Aut |
Allied Machinery and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Ningbo Fangzheng
The main advantage of trading using opposite Allied Machinery and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery position performs unexpectedly, Ningbo Fangzheng 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 Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.| Allied Machinery vs. Qtone Education Group | Allied Machinery vs. Zhejiang Publishing Media | Allied Machinery vs. Beijing Kaiwen Education | Allied Machinery vs. Wuhan Yangtze Communication |
| Ningbo Fangzheng vs. Shuhua Sports Co | Ningbo Fangzheng vs. Great Sun Foods Co | Ningbo Fangzheng vs. JuneYao Dairy Co | Ningbo Fangzheng vs. Huatian Hotel Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |