Correlation Between China Securities and Ningbo Boway
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By analyzing existing cross correlation between China Securities 800 and Ningbo Boway Alloy, you can compare the effects of market volatilities on China Securities and Ningbo Boway 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 China Securities with a short position of Ningbo Boway. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Securities and Ningbo Boway.
Diversification Opportunities for China Securities and Ningbo Boway
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Ningbo is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Securities 800 and Ningbo Boway Alloy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Boway Alloy and China Securities 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 China Securities 800 are associated (or correlated) with Ningbo Boway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Boway Alloy has no effect on the direction of China Securities i.e., China Securities and Ningbo Boway go up and down completely randomly.
Pair Corralation between China Securities and Ningbo Boway
Assuming the 90 days trading horizon China Securities is expected to generate 4.68 times less return on investment than Ningbo Boway. But when comparing it to its historical volatility, China Securities 800 is 2.44 times less risky than Ningbo Boway. It trades about 0.1 of its potential returns per unit of risk. Ningbo Boway Alloy is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,840 in Ningbo Boway Alloy on September 28, 2024 and sell it today you would earn a total of 161.00 from holding Ningbo Boway Alloy or generate 8.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
China Securities 800 vs. Ningbo Boway Alloy
Performance |
Timeline |
China Securities and Ningbo Boway Volatility Contrast
Predicted Return Density |
Returns |
China Securities 800
Pair trading matchups for China Securities
Ningbo Boway Alloy
Pair trading matchups for Ningbo Boway
Pair Trading with China Securities and Ningbo Boway
The main advantage of trading using opposite China Securities and Ningbo Boway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Securities position performs unexpectedly, Ningbo Boway 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 Boway will offset losses from the drop in Ningbo Boway's long position.China Securities vs. Unigroup Guoxin Microelectronics | China Securities vs. Goke Microelectronics Co | China Securities vs. Dongguan Tarry Electronics | China Securities vs. Kunshan Guoli Electronic |
Ningbo Boway vs. Shanghai Broadband Technology | Ningbo Boway vs. Anhui Huaheng Biotechnology | Ningbo Boway vs. Sichuan Hebang Biotechnology | Ningbo Boway vs. RoadMain T Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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