Correlation Between Ningbo Fujia and Integrated Electronic

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Can any of the company-specific risk be diversified away by investing in both Ningbo Fujia and Integrated Electronic at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ningbo Fujia and Integrated Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ningbo Fujia Industrial and Integrated Electronic Systems, you can compare the effects of market volatilities on Ningbo Fujia and Integrated Electronic 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 Fujia with a short position of Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fujia and Integrated Electronic.

Diversification Opportunities for Ningbo Fujia and Integrated Electronic

NingboIntegratedDiversified AwayNingboIntegratedDiversified Away100%
0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between Ningbo and Integrated is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fujia Industrial and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic and Ningbo Fujia 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 Fujia Industrial are associated (or correlated) with Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of Ningbo Fujia i.e., Ningbo Fujia and Integrated Electronic go up and down completely randomly.

Pair Corralation between Ningbo Fujia and Integrated Electronic

Assuming the 90 days trading horizon Ningbo Fujia Industrial is expected to generate 0.92 times more return on investment than Integrated Electronic. However, Ningbo Fujia Industrial is 1.09 times less risky than Integrated Electronic. It trades about 0.09 of its potential returns per unit of risk. Integrated Electronic Systems is currently generating about 0.04 per unit of risk. If you would invest  1,289  in Ningbo Fujia Industrial on October 20, 2024 and sell it today you would earn a total of  232.00  from holding Ningbo Fujia Industrial or generate 18.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Ningbo Fujia Industrial  vs.  Integrated Electronic Systems

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 010203040
JavaScript chart by amCharts 3.21.15603219 002339
       Timeline  
Ningbo Fujia Industrial 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Ningbo Fujia Industrial are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ningbo Fujia sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1212.51313.51414.51515.5
Integrated Electronic 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Integrated Electronic Systems are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Integrated Electronic may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan6.577.588.599.51010.5

Ningbo Fujia and Integrated Electronic Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.41-8.54-5.68-2.820.04772.895.888.8711.8714.86 0.0160.0180.0200.0220.0240.0260.0280.030
JavaScript chart by amCharts 3.21.15603219 002339
       Returns  

Pair Trading with Ningbo Fujia and Integrated Electronic

The main advantage of trading using opposite Ningbo Fujia and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fujia position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.
The idea behind Ningbo Fujia Industrial and Integrated Electronic Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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