Correlation Between Ningbo Tech-Bank and Jinhe Biotechnology
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Jinhe Biotechnology Co, you can compare the effects of market volatilities on Ningbo Tech-Bank and Jinhe Biotechnology 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-Bank with a short position of Jinhe Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech-Bank and Jinhe Biotechnology.
Diversification Opportunities for Ningbo Tech-Bank and Jinhe Biotechnology
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Jinhe is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Jinhe Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhe Biotechnology and Ningbo Tech-Bank 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 Jinhe Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhe Biotechnology has no effect on the direction of Ningbo Tech-Bank i.e., Ningbo Tech-Bank and Jinhe Biotechnology go up and down completely randomly.
Pair Corralation between Ningbo Tech-Bank and Jinhe Biotechnology
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 0.76 times more return on investment than Jinhe Biotechnology. However, Ningbo Tech Bank Co is 1.31 times less risky than Jinhe Biotechnology. It trades about 0.16 of its potential returns per unit of risk. Jinhe Biotechnology Co is currently generating about 0.01 per unit of risk. If you would invest 278.00 in Ningbo Tech Bank Co on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Ningbo Tech Bank Co or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Jinhe Biotechnology Co
Performance |
| Timeline |
| Ningbo Tech Bank |
| Jinhe Biotechnology |
Ningbo Tech-Bank and Jinhe Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech-Bank and Jinhe Biotechnology
The main advantage of trading using opposite Ningbo Tech-Bank and Jinhe Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech-Bank position performs unexpectedly, Jinhe Biotechnology 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 Jinhe Biotechnology will offset losses from the drop in Jinhe Biotechnology's long position.| Ningbo Tech-Bank vs. Shenzhen Centralcon Investment | Ningbo Tech-Bank vs. Hubei Geoway Investment | Ningbo Tech-Bank vs. Fujian Boss Software | Ningbo Tech-Bank vs. Bingo Software Co |
| Jinhe Biotechnology vs. PetroChina Co Ltd | Jinhe Biotechnology vs. China Railway Construction | Jinhe Biotechnology vs. China Mobile Limited | Jinhe Biotechnology vs. Industrial and Commercial |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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