Correlation Between Ningbo Tech and GreenTech Environmental
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By analyzing existing cross correlation between Ningbo Tech Bank Co and GreenTech Environmental Co, you can compare the effects of market volatilities on Ningbo Tech and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tech and GreenTech Environmental.
Diversification Opportunities for Ningbo Tech and GreenTech Environmental
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and GreenTech is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tech Bank Co and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Ningbo Tech i.e., Ningbo Tech and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Ningbo Tech and GreenTech Environmental
Assuming the 90 days trading horizon Ningbo Tech Bank Co is expected to generate 1.11 times more return on investment than GreenTech Environmental. However, Ningbo Tech is 1.11 times more volatile than GreenTech Environmental Co. It trades about -0.1 of its potential returns per unit of risk. GreenTech Environmental Co is currently generating about -0.17 per unit of risk. If you would invest 328.00 in Ningbo Tech Bank Co on October 30, 2024 and sell it today you would lose (30.00) from holding Ningbo Tech Bank Co or give up 9.15% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Ningbo Tech Bank |
| GreenTech Environmental |
Ningbo Tech and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tech and GreenTech Environmental
The main advantage of trading using opposite Ningbo Tech and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tech position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Ningbo Tech vs. Shanghai CEO Environmental | Ningbo Tech vs. Jinhe Biotechnology Co | Ningbo Tech vs. Kuang Chi Technologies | Ningbo Tech vs. Sharetronic Data 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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