Correlation Between Hygon Information and Ningbo Kangqiang
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By analyzing existing cross correlation between Hygon Information Technology and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Hygon Information 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 Hygon Information with a short position of Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and Ningbo Kangqiang.
Diversification Opportunities for Hygon Information and Ningbo Kangqiang
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hygon and Ningbo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology 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 Hygon Information 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 Hygon Information Technology 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 Hygon Information i.e., Hygon Information and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Hygon Information and Ningbo Kangqiang
Assuming the 90 days trading horizon Hygon Information Technology is expected to under-perform the Ningbo Kangqiang. But the stock apears to be less risky and, when comparing its historical volatility, Hygon Information Technology is 1.1 times less risky than Ningbo Kangqiang. The stock trades about -0.01 of its potential returns per unit of risk. The Ningbo Kangqiang Electronics is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,490 in Ningbo Kangqiang Electronics on October 24, 2024 and sell it today you would earn a total of 480.00 from holding Ningbo Kangqiang Electronics or generate 32.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Hygon Information |
| Ningbo Kangqiang Ele |
Hygon Information and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and Ningbo Kangqiang
The main advantage of trading using opposite Hygon Information and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information 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.| Hygon Information vs. BYD Co Ltd | Hygon Information vs. China Mobile Limited | Hygon Information vs. Agricultural Bank of | Hygon Information vs. Industrial and Commercial |
| Ningbo Kangqiang vs. Hygon Information Technology | Ningbo Kangqiang vs. GRIPM Advanced Materials | Ningbo Kangqiang vs. Jiangnan Mould Plastic | Ningbo Kangqiang vs. Jinsanjiang Silicon Material |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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