Correlation Between Ningbo Ligong and Bank of China
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By analyzing existing cross correlation between Ningbo Ligong Online and Bank of China, you can compare the effects of market volatilities on Ningbo Ligong and Bank of China 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 Ligong with a short position of Bank of China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Bank of China.
Diversification Opportunities for Ningbo Ligong and Bank of China
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Bank is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Bank of China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of China and Ningbo Ligong 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 Ligong Online are associated (or correlated) with Bank of China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of China has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Bank of China go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Bank of China
Assuming the 90 days trading horizon Ningbo Ligong is expected to generate 1.02 times less return on investment than Bank of China. In addition to that, Ningbo Ligong is 1.75 times more volatile than Bank of China. It trades about 0.05 of its total potential returns per unit of risk. Bank of China is currently generating about 0.09 per unit of volatility. If you would invest 296.00 in Bank of China on September 5, 2024 and sell it today you would earn a total of 213.00 from holding Bank of China or generate 71.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Bank of China
Performance |
| Timeline |
| Ningbo Ligong Online |
| Bank of China |
Ningbo Ligong and Bank of China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Bank of China
The main advantage of trading using opposite Ningbo Ligong and Bank of China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Bank of China 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 Bank of China will offset losses from the drop in Bank of China's long position.| Ningbo Ligong vs. Zhejiang Kingland Pipeline | Ningbo Ligong vs. China Sports Industry | Ningbo Ligong vs. Guangzhou Jointas Chemical | Ningbo Ligong vs. Miracll Chemicals Co |
| Bank of China vs. Jafron Biomedical Co | Bank of China vs. Dezhan HealthCare Co | Bank of China vs. Ningbo Ligong Online | Bank of China vs. Guangzhou Boji Medical |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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