Correlation Between Ningbo Tech and Zhengzhou Yutong
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Zhengzhou Yutong Bus, you can compare the effects of market volatilities on Ningbo Tech and Zhengzhou Yutong 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 Zhengzhou Yutong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Zhengzhou Yutong.
Diversification Opportunities for Ningbo Tech and Zhengzhou Yutong
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Zhengzhou is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Zhengzhou Yutong Bus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Yutong Bus 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 Zhengzhou Yutong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Yutong Bus has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Zhengzhou Yutong go up and down completely randomly.
Pair Corralation between Ningbo Tech and Zhengzhou Yutong
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to under-perform the Zhengzhou Yutong. In addition to that, Ningbo Tech is 1.22 times more volatile than Zhengzhou Yutong Bus. It trades about -0.01 of its total potential returns per unit of risk. Zhengzhou Yutong Bus is currently generating about 0.11 per unit of volatility. If you would invest 1,319 in Zhengzhou Yutong Bus on September 12, 2024 and sell it today you would earn a total of 1,076 from holding Zhengzhou Yutong Bus or generate 81.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Zhengzhou Yutong Bus
Performance |
| Timeline |
| Ningbo Tech Bank |
| Zhengzhou Yutong Bus |
Ningbo Tech and Zhengzhou Yutong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Zhengzhou Yutong
The main advantage of trading using opposite Ningbo Tech and Zhengzhou Yutong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Zhengzhou Yutong 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 Zhengzhou Yutong will offset losses from the drop in Zhengzhou Yutong's long position.| Ningbo Tech vs. China Petroleum Chemical | Ningbo Tech vs. PetroChina Co Ltd | Ningbo Tech vs. China State Construction | Ningbo Tech vs. China Railway Group |
| Zhengzhou Yutong vs. Ye Chiu Metal | Zhengzhou Yutong vs. Sinomach Automobile Co | Zhengzhou Yutong vs. Chengtun Mining Group | Zhengzhou Yutong vs. Lonkey Industrial Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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