Correlation Between Ningbo Tech and Pengxin International
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Tech Bank Co and Pengxin International Mining, you can compare the effects of market volatilities on Ningbo Tech and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Pengxin International.
Diversification Opportunities for Ningbo Tech and Pengxin International
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ningbo and Pengxin is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Pengxin International go up and down completely randomly.
Pair Corralation between Ningbo Tech and Pengxin International
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 0.64 times more return on investment than Pengxin International. However, Ningbo Tech Bank Co is 1.57 times less risky than Pengxin International. It trades about 0.18 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.19 per unit of risk. If you would invest 280.00 in Ningbo Tech Bank Co on October 28, 2024 and sell it today you would earn a total of 24.00 from holding Ningbo Tech Bank Co or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Pengxin International Mining
Performance |
| Timeline |
| Ningbo Tech Bank |
| Pengxin International |
Ningbo Tech and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Pengxin International
The main advantage of trading using opposite Ningbo Tech and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Ningbo Tech vs. Youyou Foods Co | Ningbo Tech vs. Ping An Insurance | Ningbo Tech vs. HeNan Splendor Science | Ningbo Tech vs. Qingdao Foods 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |