Correlation Between Ningbo Tech and Yunnan Hongxiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Tech Bank Co and Yunnan Hongxiang Yixintang, you can compare the effects of market volatilities on Ningbo Tech and Yunnan Hongxiang 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 Yunnan Hongxiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Yunnan Hongxiang.
Diversification Opportunities for Ningbo Tech and Yunnan Hongxiang
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Yunnan is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Yunnan Hongxiang Yixintang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Hongxiang Yix 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 Yunnan Hongxiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Hongxiang Yix has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Yunnan Hongxiang go up and down completely randomly.
Pair Corralation between Ningbo Tech and Yunnan Hongxiang
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 1.77 times more return on investment than Yunnan Hongxiang. However, Ningbo Tech is 1.77 times more volatile than Yunnan Hongxiang Yixintang. It trades about 0.16 of its potential returns per unit of risk. Yunnan Hongxiang Yixintang is currently generating about -0.06 per unit of risk. If you would invest 278.00 in Ningbo Tech Bank Co on November 2, 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Yunnan Hongxiang Yixintang
Performance |
| Timeline |
| Ningbo Tech Bank |
| Yunnan Hongxiang Yix |
Ningbo Tech and Yunnan Hongxiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Yunnan Hongxiang
The main advantage of trading using opposite Ningbo Tech and Yunnan Hongxiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Yunnan Hongxiang 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 Yunnan Hongxiang will offset losses from the drop in Yunnan Hongxiang's long position.| Ningbo Tech vs. Shanghai Yaoji Playing | Ningbo Tech vs. China Aluminum International | Ningbo Tech vs. Tongling Nonferrous Metals | Ningbo Tech vs. Sino Platinum Metals Co |
| Yunnan Hongxiang vs. Kunwu Jiuding Investment | Yunnan Hongxiang vs. Zhongrun Resources Investment | Yunnan Hongxiang vs. Chengdu Xingrong Investment | Yunnan Hongxiang vs. Malion New Materials |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |