Correlation Between Ningbo Tech and Hubeiyichang Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Tech Bank Co and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Ningbo Tech and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Hubeiyichang Transportation.
Diversification Opportunities for Ningbo Tech and Hubeiyichang Transportation
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Hubeiyichang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Ningbo Tech and Hubeiyichang Transportation
Assuming the 90 days trading horizon Ningbo Tech is expected to generate 1.39 times less return on investment than Hubeiyichang Transportation. In addition to that, Ningbo Tech is 2.07 times more volatile than Hubeiyichang Transportation Group. It trades about 0.09 of its total potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.26 per unit of volatility. If you would invest 508.00 in Hubeiyichang Transportation Group on September 5, 2024 and sell it today you would earn a total of 42.00 from holding Hubeiyichang Transportation Group or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Ningbo Tech Bank |
| Hubeiyichang Transportation |
Ningbo Tech and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Hubeiyichang Transportation
The main advantage of trading using opposite Ningbo Tech and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Ningbo Tech vs. Bomin Electronics Co | Ningbo Tech vs. Fuzhou Rockchip Electronics | Ningbo Tech vs. Guangzhou Zhujiang Brewery | Ningbo Tech vs. Leaguer Shenzhen MicroElectronics |
| Hubeiyichang Transportation vs. Ming Yang Smart | Hubeiyichang Transportation vs. 159681 | Hubeiyichang Transportation vs. 159005 | Hubeiyichang Transportation vs. Loctek Ergonomic Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges |