Correlation Between Shantui Construction and Ningbo MedicalSystem
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By analyzing existing cross correlation between Shantui Construction Machinery and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Shantui Construction and Ningbo MedicalSystem 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 Shantui Construction with a short position of Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and Ningbo MedicalSystem.
Diversification Opportunities for Shantui Construction and Ningbo MedicalSystem
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shantui and Ningbo is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Shantui Construction i.e., Shantui Construction and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Shantui Construction and Ningbo MedicalSystem
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to under-perform the Ningbo MedicalSystem. In addition to that, Shantui Construction is 1.12 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about -0.32 of its total potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about -0.16 per unit of volatility. If you would invest 1,143 in Ningbo MedicalSystem Biotechnology on September 28, 2024 and sell it today you would lose (64.00) from holding Ningbo MedicalSystem Biotechnology or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Shantui Construction |
| Ningbo MedicalSystem |
Shantui Construction and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and Ningbo MedicalSystem
The main advantage of trading using opposite Shantui Construction and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, Ningbo MedicalSystem 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 MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Shantui Construction vs. ZYF Lopsking Aluminum | Shantui Construction vs. Western Metal Materials | Shantui Construction vs. Healthcare Co | Shantui Construction vs. Anhui Transport Consulting |
| Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. Agricultural Bank of | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Bank of China |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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