Correlation Between Zoje Resources and Ningbo Boway
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By analyzing existing cross correlation between Zoje Resources Investment and Ningbo Boway Alloy, you can compare the effects of market volatilities on Zoje Resources 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 Zoje Resources with a short position of Ningbo Boway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Ningbo Boway.
Diversification Opportunities for Zoje Resources and Ningbo Boway
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zoje and Ningbo is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment 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 Zoje Resources 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 Zoje Resources Investment 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 Zoje Resources i.e., Zoje Resources and Ningbo Boway go up and down completely randomly.
Pair Corralation between Zoje Resources and Ningbo Boway
Assuming the 90 days trading horizon Zoje Resources Investment is expected to under-perform the Ningbo Boway. But the stock apears to be less risky and, when comparing its historical volatility, Zoje Resources Investment is 1.1 times less risky than Ningbo Boway. The stock trades about -0.32 of its potential returns per unit of risk. The Ningbo Boway Alloy is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,769 in Ningbo Boway Alloy on October 15, 2024 and sell it today you would earn a total of 119.00 from holding Ningbo Boway Alloy or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Ningbo Boway Alloy
Performance |
| Timeline |
| Zoje Resources Investment |
| Ningbo Boway Alloy |
Zoje Resources and Ningbo Boway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Ningbo Boway
The main advantage of trading using opposite Zoje Resources and Ningbo Boway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources 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.| Zoje Resources vs. Ningbo MedicalSystem Biotechnology | Zoje Resources vs. Guotai Epoint Software | Zoje Resources vs. Shenzhen Topway Video | Zoje Resources vs. Thunder Software Technology |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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