Correlation Between Ningbo Fangzheng and Standard
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and Standard Motor Products, you can compare the effects of market volatilities on Ningbo Fangzheng and Standard 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 Fangzheng with a short position of Standard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and Standard.
Diversification Opportunities for Ningbo Fangzheng and Standard
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Standard is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and Standard Motor Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Motor Products and Ningbo Fangzheng 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 Fangzheng Automobile are associated (or correlated) with Standard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Motor Products has no effect on the direction of Ningbo Fangzheng i.e., Ningbo Fangzheng and Standard go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and Standard
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the Standard. In addition to that, Ningbo Fangzheng is 1.32 times more volatile than Standard Motor Products. It trades about -0.12 of its total potential returns per unit of risk. Standard Motor Products is currently generating about -0.05 per unit of volatility. If you would invest 3,967 in Standard Motor Products on September 5, 2025 and sell it today you would lose (259.00) from holding Standard Motor Products or give up 6.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.06% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. Standard Motor Products
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| Standard Motor Products |
Ningbo Fangzheng and Standard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and Standard
The main advantage of trading using opposite Ningbo Fangzheng and Standard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng position performs unexpectedly, Standard 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 Standard will offset losses from the drop in Standard's long position.| Ningbo Fangzheng vs. Aluminum Corp of | Ningbo Fangzheng vs. Ye Chiu Metal | Ningbo Fangzheng vs. Shanghai Jinfeng Wine | Ningbo Fangzheng vs. Easyhome New Retail |
| Standard vs. Woori Financial Group | Standard vs. Burke Herbert Financial | Standard vs. nDatalyze Corp | Standard vs. National Bank of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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