Correlation Between Blue Sail and Ningbo MedicalSystem
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By analyzing existing cross correlation between Blue Sail Medical and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Blue Sail and Ningbo MedicalSystem 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 Blue Sail with a short position of Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Ningbo MedicalSystem.
Diversification Opportunities for Blue Sail and Ningbo MedicalSystem
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Blue and Ningbo is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem and Blue Sail 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 Blue Sail Medical are associated (or correlated) with Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Blue Sail i.e., Blue Sail and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Blue Sail and Ningbo MedicalSystem
Assuming the 90 days trading horizon Blue Sail Medical is expected to under-perform the Ningbo MedicalSystem. But the stock apears to be less risky and, when comparing its historical volatility, Blue Sail Medical is 1.19 times less risky than Ningbo MedicalSystem. The stock trades about -0.02 of its potential returns per unit of risk. The Ningbo MedicalSystem Biotechnology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,123 in Ningbo MedicalSystem Biotechnology on August 31, 2024 and sell it today you would earn a total of 38.00 from holding Ningbo MedicalSystem Biotechnology or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Sail Medical vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Blue Sail Medical |
| Ningbo MedicalSystem |
Blue Sail and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sail and Ningbo MedicalSystem
The main advantage of trading using opposite Blue Sail and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail position performs unexpectedly, Ningbo MedicalSystem 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 MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Blue Sail vs. PetroChina Co Ltd | Blue Sail vs. China Mobile Limited | Blue Sail vs. Ping An Insurance | Blue Sail vs. China Petroleum Chemical |
| Ningbo MedicalSystem vs. Changjiang Publishing Media | Ningbo MedicalSystem vs. HanS Laser Tech | Ningbo MedicalSystem vs. Northern United Publishing | Ningbo MedicalSystem vs. Chinese Universe Publishing |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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