Correlation Between City Development and Ningbo MedicalSystem
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By analyzing existing cross correlation between City Development Environment and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on City Development 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 City Development with a short position of Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Development and Ningbo MedicalSystem.
Diversification Opportunities for City Development and Ningbo MedicalSystem
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between City and Ningbo is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding City Development Environment and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem and City Development 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 City Development Environment 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 City Development i.e., City Development and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between City Development and Ningbo MedicalSystem
Assuming the 90 days trading horizon City Development Environment is expected to generate 0.88 times more return on investment than Ningbo MedicalSystem. However, City Development Environment is 1.14 times less risky than Ningbo MedicalSystem. It trades about -0.15 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about -0.16 per unit of risk. If you would invest 1,405 in City Development Environment on October 11, 2024 and sell it today you would lose (166.00) from holding City Development Environment or give up 11.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City Development Environment vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| City Development Env |
| Ningbo MedicalSystem |
City Development and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City Development and Ningbo MedicalSystem
The main advantage of trading using opposite City Development and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City Development 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.| City Development vs. Huasi Agricultural Development | City Development vs. Long Yuan Construction | City Development vs. Allied Machinery Co | City Development vs. Eastroc Beverage Group |
| Ningbo MedicalSystem vs. City Development Environment | Ningbo MedicalSystem vs. Hunan Tyen Machinery | Ningbo MedicalSystem vs. Masterwork Machinery | Ningbo MedicalSystem vs. Jinlong Machinery Electronic |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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