Correlation Between GRG Banking and Ningbo Tech
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By analyzing existing cross correlation between GRG Banking Equipment and Ningbo Tech Bank Co, you can compare the effects of market volatilities on GRG Banking and Ningbo Tech 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 GRG Banking with a short position of Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Ningbo Tech.
Diversification Opportunities for GRG Banking and Ningbo Tech
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRG and Ningbo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank and GRG Banking 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 GRG Banking Equipment are associated (or correlated) with Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of GRG Banking i.e., GRG Banking and Ningbo Tech go up and down completely randomly.
Pair Corralation between GRG Banking and Ningbo Tech
Assuming the 90 days trading horizon GRG Banking Equipment is expected to under-perform the Ningbo Tech. But the stock apears to be less risky and, when comparing its historical volatility, GRG Banking Equipment is 1.01 times less risky than Ningbo Tech. The stock trades about -0.03 of its potential returns per unit of risk. The Ningbo Tech Bank Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 260.00 in Ningbo Tech Bank Co on October 25, 2024 and sell it today you would earn a total of 45.00 from holding Ningbo Tech Bank Co or generate 17.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| GRG Banking Equipment |
| Ningbo Tech Bank |
GRG Banking and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Ningbo Tech
The main advantage of trading using opposite GRG Banking and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| GRG Banking vs. Kweichow Moutai Co | GRG Banking vs. NAURA Technology Group | GRG Banking vs. APT Medical | GRG Banking vs. BYD Co Ltd |
| Ningbo Tech vs. Lotus Health Group | Ningbo Tech vs. Anhui Jinhe Industrial | Ningbo Tech vs. Dezhan HealthCare Co | Ningbo Tech vs. Ningbo Fujia Industrial |
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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