Correlation Between Ningbo Tech and Penyao Environmental
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Penyao Environmental Protection, you can compare the effects of market volatilities on Ningbo Tech and Penyao Environmental 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 Penyao Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Penyao Environmental.
Diversification Opportunities for Ningbo Tech and Penyao Environmental
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Penyao is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Penyao Environmental Protectio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penyao Environmental 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 Penyao Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penyao Environmental has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Penyao Environmental go up and down completely randomly.
Pair Corralation between Ningbo Tech and Penyao Environmental
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to under-perform the Penyao Environmental. In addition to that, Ningbo Tech is 1.15 times more volatile than Penyao Environmental Protection. It trades about -0.05 of its total potential returns per unit of risk. Penyao Environmental Protection is currently generating about 0.01 per unit of volatility. If you would invest 502.00 in Penyao Environmental Protection on October 16, 2024 and sell it today you would earn a total of 2.00 from holding Penyao Environmental Protection or generate 0.4% 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. Penyao Environmental Protectio
Performance |
| Timeline |
| Ningbo Tech Bank |
| Penyao Environmental |
Ningbo Tech and Penyao Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Penyao Environmental
The main advantage of trading using opposite Ningbo Tech and Penyao Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Penyao Environmental 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 Penyao Environmental will offset losses from the drop in Penyao Environmental's long position.| Ningbo Tech vs. TianJin 712 Communication | Ningbo Tech vs. Jilin Jlu Communication | Ningbo Tech vs. Western Metal Materials | Ningbo Tech vs. Runjian Communication Co |
| Penyao Environmental vs. Unisplendour Corp | Penyao Environmental vs. Ningbo Tech Bank Co | Penyao Environmental vs. Ping An Insurance | Penyao Environmental vs. Hubei Xingfa Chemicals |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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