Correlation Between Shaanxi Meineng and Ningbo Tech
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Shaanxi Meineng and Ningbo Tech 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 Shaanxi Meineng with a short position of Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Ningbo Tech.
Diversification Opportunities for Shaanxi Meineng and Ningbo Tech
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and Ningbo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank and Shaanxi Meineng 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 Shaanxi Meineng Clean are associated (or correlated) with Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and Ningbo Tech go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Ningbo Tech
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to generate 1.17 times more return on investment than Ningbo Tech. However, Shaanxi Meineng is 1.17 times more volatile than Ningbo Tech Bank Co. It trades about -0.02 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about -0.04 per unit of risk. If you would invest 2,318 in Shaanxi Meineng Clean on September 3, 2024 and sell it today you would lose (936.00) from holding Shaanxi Meineng Clean or give up 40.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Ningbo Tech Bank |
Shaanxi Meineng and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Ningbo Tech
The main advantage of trading using opposite Shaanxi Meineng and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, Ningbo Tech 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 Tech will offset losses from the drop in Ningbo Tech's long position.| Shaanxi Meineng vs. Industrial and Commercial | Shaanxi Meineng vs. Agricultural Bank of | Shaanxi Meineng vs. China Construction Bank | Shaanxi Meineng vs. Bank of China |
| Ningbo Tech vs. Beijing Wantai Biological | Ningbo Tech vs. Aluminum Corp of | Ningbo Tech vs. COL Digital Publishing | Ningbo Tech vs. Shaanxi Meineng Clean |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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