Correlation Between Ningbo Tech and Beijing Wantai
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By analyzing existing cross correlation between Ningbo Tech Bank Co and Beijing Wantai Biological, you can compare the effects of market volatilities on Ningbo Tech and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and Beijing Wantai.
Diversification Opportunities for Ningbo Tech and Beijing Wantai
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Beijing is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and Beijing Wantai go up and down completely randomly.
Pair Corralation between Ningbo Tech and Beijing Wantai
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 1.44 times more return on investment than Beijing Wantai. However, Ningbo Tech is 1.44 times more volatile than Beijing Wantai Biological. It trades about 0.07 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about 0.03 per unit of risk. If you would invest 257.00 in Ningbo Tech Bank Co on September 3, 2024 and sell it today you would earn a total of 71.00 from holding Ningbo Tech Bank Co or generate 27.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tech Bank Co vs. Beijing Wantai Biological
Performance |
| Timeline |
| Ningbo Tech Bank |
| Beijing Wantai Biological |
Ningbo Tech and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and Beijing Wantai
The main advantage of trading using opposite Ningbo Tech and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| Ningbo Tech vs. Beijing Wantai Biological | Ningbo Tech vs. Aluminum Corp of | Ningbo Tech vs. COL Digital Publishing | Ningbo Tech vs. Shaanxi Meineng Clean |
| Beijing Wantai vs. Cofoe Medical Technology | Beijing Wantai vs. Guangzhou Boji Medical | Beijing Wantai vs. Qingdao Baheal Medical | Beijing Wantai vs. Double 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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