Correlation Between Ningbo Tech-Bank and Aba Chemicals
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Aba Chemicals Corp, you can compare the effects of market volatilities on Ningbo Tech-Bank and Aba Chemicals 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 Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech-Bank and Aba Chemicals.
Diversification Opportunities for Ningbo Tech-Bank and Aba Chemicals
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Aba is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp 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 Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Ningbo Tech-Bank i.e., Ningbo Tech-Bank and Aba Chemicals go up and down completely randomly.
Pair Corralation between Ningbo Tech-Bank and Aba Chemicals
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 1.06 times more return on investment than Aba Chemicals. However, Ningbo Tech-Bank is 1.06 times more volatile than Aba Chemicals Corp. It trades about 0.27 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about -0.17 per unit of risk. If you would invest 268.00 in Ningbo Tech Bank Co on November 5, 2024 and sell it today you would earn a total of 30.00 from holding Ningbo Tech Bank Co or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Aba Chemicals Corp
Performance |
| Timeline |
| Ningbo Tech Bank |
| Aba Chemicals Corp |
Ningbo Tech-Bank and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech-Bank and Aba Chemicals
The main advantage of trading using opposite Ningbo Tech-Bank and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech-Bank position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Ningbo Tech-Bank vs. Chenzhou Jingui Silver | Ningbo Tech-Bank vs. Dymatic Chemicals | Ningbo Tech-Bank vs. Daoming OpticsChemical Co | Ningbo Tech-Bank vs. Guocheng Mining Co |
| Aba Chemicals vs. Zijin Mining Group | Aba Chemicals vs. Wanhua Chemical Group | Aba Chemicals vs. Baoshan Iron Steel | Aba Chemicals vs. Shandong Gold Mining |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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