Correlation Between Ningbo Tech and HeNan Splendor
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By analyzing existing cross correlation between Ningbo Tech Bank Co and HeNan Splendor Science, you can compare the effects of market volatilities on Ningbo Tech and HeNan Splendor 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 Ningbo Tech with a short position of HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and HeNan Splendor.
Diversification Opportunities for Ningbo Tech and HeNan Splendor
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and HeNan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science and Ningbo Tech 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 Ningbo Tech Bank Co are associated (or correlated) with HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and HeNan Splendor go up and down completely randomly.
Pair Corralation between Ningbo Tech and HeNan Splendor
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to under-perform the HeNan Splendor. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Tech Bank Co is 2.12 times less risky than HeNan Splendor. The stock trades about -0.29 of its potential returns per unit of risk. The HeNan Splendor Science is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,065 in HeNan Splendor Science on September 29, 2024 and sell it today you would lose (17.00) from holding HeNan Splendor Science or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. HeNan Splendor Science
Performance |
| Timeline |
| Ningbo Tech Bank |
| HeNan Splendor Science |
Ningbo Tech and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and HeNan Splendor
The main advantage of trading using opposite Ningbo Tech and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Ningbo Tech vs. Industrial and Commercial | Ningbo Tech vs. China Construction Bank | Ningbo Tech vs. Agricultural Bank of | Ningbo Tech vs. Bank of China |
| HeNan Splendor vs. Guangxi Wuzhou Communications | HeNan Splendor vs. Eastroc Beverage Group | HeNan Splendor vs. Easyhome New Retail | HeNan Splendor vs. Ligao Foods CoLtd |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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