Correlation Between Ningbo Tech-Bank and Xinhu Zhongbao
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Xinhu Zhongbao Co, you can compare the effects of market volatilities on Ningbo Tech-Bank and Xinhu Zhongbao 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 Xinhu Zhongbao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech-Bank and Xinhu Zhongbao.
Diversification Opportunities for Ningbo Tech-Bank and Xinhu Zhongbao
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Xinhu is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Xinhu Zhongbao Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhu Zhongbao 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 Xinhu Zhongbao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhu Zhongbao has no effect on the direction of Ningbo Tech-Bank i.e., Ningbo Tech-Bank and Xinhu Zhongbao go up and down completely randomly.
Pair Corralation between Ningbo Tech-Bank and Xinhu Zhongbao
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to under-perform the Xinhu Zhongbao. In addition to that, Ningbo Tech-Bank is 1.13 times more volatile than Xinhu Zhongbao Co. It trades about -0.05 of its total potential returns per unit of risk. Xinhu Zhongbao Co is currently generating about 0.02 per unit of volatility. If you would invest 268.00 in Xinhu Zhongbao Co on November 2, 2024 and sell it today you would earn a total of 20.00 from holding Xinhu Zhongbao Co or generate 7.46% 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. Xinhu Zhongbao Co
Performance |
| Timeline |
| Ningbo Tech Bank |
| Xinhu Zhongbao |
Ningbo Tech-Bank and Xinhu Zhongbao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech-Bank and Xinhu Zhongbao
The main advantage of trading using opposite Ningbo Tech-Bank and Xinhu Zhongbao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech-Bank position performs unexpectedly, Xinhu Zhongbao 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 Xinhu Zhongbao will offset losses from the drop in Xinhu Zhongbao's long position.| Ningbo Tech-Bank vs. Shenzhen Centralcon Investment | Ningbo Tech-Bank vs. Hubei Geoway Investment | Ningbo Tech-Bank vs. Fujian Boss Software | Ningbo Tech-Bank vs. Bingo Software Co |
| Xinhu Zhongbao vs. Wuhan Yangtze Communication | Xinhu Zhongbao vs. Beijing Yanjing Brewery | Xinhu Zhongbao vs. Shanghai Ziyan Foods | Xinhu Zhongbao vs. Guangxi Wuzhou Communications |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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