Correlation Between Ningbo Tech and Minmetals Capital
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Minmetals Capital Co, you can compare the effects of market volatilities on Ningbo Tech and Minmetals Capital 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 Minmetals Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Minmetals Capital.
Diversification Opportunities for Ningbo Tech and Minmetals Capital
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Minmetals is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Minmetals Capital Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minmetals Capital 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 Minmetals Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minmetals Capital has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Minmetals Capital go up and down completely randomly.
Pair Corralation between Ningbo Tech and Minmetals Capital
Assuming the 90 days trading horizon Ningbo Tech is expected to generate 2.03 times less return on investment than Minmetals Capital. But when comparing it to its historical volatility, Ningbo Tech Bank Co is 1.54 times less risky than Minmetals Capital. It trades about 0.09 of its potential returns per unit of risk. Minmetals Capital Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 403.00 in Minmetals Capital Co on November 2, 2024 and sell it today you would earn a total of 195.00 from holding Minmetals Capital Co or generate 48.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Minmetals Capital Co
Performance |
| Timeline |
| Ningbo Tech Bank |
| Minmetals Capital |
Ningbo Tech and Minmetals Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Minmetals Capital
The main advantage of trading using opposite Ningbo Tech and Minmetals Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Minmetals Capital 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 Minmetals Capital will offset losses from the drop in Minmetals Capital's long position.| Ningbo Tech vs. Shanghai Yaoji Playing | Ningbo Tech vs. China Aluminum International | Ningbo Tech vs. Tongling Nonferrous Metals | Ningbo Tech vs. Sino Platinum Metals Co |
| Minmetals Capital vs. Kuang Chi Technologies | Minmetals Capital vs. Tinavi Medical Technologies | Minmetals Capital vs. Xiangyu Medical Co | Minmetals Capital vs. Kontour Medical Technology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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