Correlation Between Ningbo Tech and Hua Xia
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Hua Xia Bank, you can compare the effects of market volatilities on Ningbo Tech and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Hua Xia.
Diversification Opportunities for Ningbo Tech and Hua Xia
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Hua is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Hua Xia go up and down completely randomly.
Pair Corralation between Ningbo Tech and Hua Xia
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to under-perform the Hua Xia. In addition to that, Ningbo Tech is 1.99 times more volatile than Hua Xia Bank. It trades about -0.17 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about -0.12 per unit of volatility. If you would invest 778.00 in Hua Xia Bank on October 17, 2024 and sell it today you would lose (25.00) from holding Hua Xia Bank or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Hua Xia Bank
Performance |
| Timeline |
| Ningbo Tech Bank |
| Hua Xia Bank |
Ningbo Tech and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Hua Xia
The main advantage of trading using opposite Ningbo Tech and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Ningbo Tech vs. YiDong Electronics Technology | Ningbo Tech vs. Nantong Haixing Electronics | Ningbo Tech vs. Winner Medical Co | Ningbo Tech vs. Beijing YanDong MicroElectronic |
| Hua Xia vs. Guangzhou Haige Communications | Hua Xia vs. Guangxi Wuzhou Communications | Hua Xia vs. Beijing Kingsoft Office | Hua Xia vs. Queclink Wireless Solutions |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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