Correlation Between Ningbo Tech-Bank and Shanghai Yanpu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Tech Bank Co and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Ningbo Tech-Bank and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech-Bank and Shanghai Yanpu.
Diversification Opportunities for Ningbo Tech-Bank and Shanghai Yanpu
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Shanghai is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Ningbo Tech-Bank i.e., Ningbo Tech-Bank and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Ningbo Tech-Bank and Shanghai Yanpu
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 1.53 times more return on investment than Shanghai Yanpu. However, Ningbo Tech-Bank is 1.53 times more volatile than Shanghai Yanpu Metal. It trades about 0.27 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.04 per unit of risk. If you would invest 268.00 in Ningbo Tech Bank Co on November 5, 2024 and sell it today you would earn a total of 30.00 from holding Ningbo Tech Bank Co or generate 11.19% 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. Shanghai Yanpu Metal
Performance |
| Timeline |
| Ningbo Tech Bank |
| Shanghai Yanpu Metal |
Ningbo Tech-Bank and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech-Bank and Shanghai Yanpu
The main advantage of trading using opposite Ningbo Tech-Bank and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech-Bank position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Ningbo Tech-Bank vs. Chenzhou Jingui Silver | Ningbo Tech-Bank vs. Dymatic Chemicals | Ningbo Tech-Bank vs. Daoming OpticsChemical Co | Ningbo Tech-Bank vs. Guocheng Mining Co |
| Shanghai Yanpu vs. HUAQIN TECHNOLOGY LTD | Shanghai Yanpu vs. Sharetronic Data Technology | Shanghai Yanpu vs. Jiujiang Shanshui Technology | Shanghai Yanpu vs. Fiberhome Telecommunication Technologies |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |