Correlation Between Ningbo Tech and Hunan Tyen
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Hunan Tyen Machinery, you can compare the effects of market volatilities on Ningbo Tech and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Hunan Tyen.
Diversification Opportunities for Ningbo Tech and Hunan Tyen
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Hunan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Hunan Tyen go up and down completely randomly.
Pair Corralation between Ningbo Tech and Hunan Tyen
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to under-perform the Hunan Tyen. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Tech Bank Co is 1.18 times less risky than Hunan Tyen. The stock trades about -0.05 of its potential returns per unit of risk. The Hunan Tyen Machinery is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 509.00 in Hunan Tyen Machinery on October 11, 2024 and sell it today you would lose (2.00) from holding Hunan Tyen Machinery or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Ningbo Tech Bank |
| Hunan Tyen Machinery |
Ningbo Tech and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Hunan Tyen
The main advantage of trading using opposite Ningbo Tech and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| Ningbo Tech vs. Road Environment Technology | Ningbo Tech vs. Dynagreen Environmental Protection | Ningbo Tech vs. Jiangsu Broadcasting Cable | Ningbo Tech vs. Hainan Haiqi Transportation |
| Hunan Tyen vs. Postal Savings Bank | Hunan Tyen vs. Chengdu Spaceon Electronics | Hunan Tyen vs. Ningbo Tech Bank Co | Hunan Tyen vs. Xiamen Bank 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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