Correlation Between Shenzhen Glory and Ningbo MedicalSystem
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By analyzing existing cross correlation between Shenzhen Glory Medical and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Shenzhen Glory 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 Shenzhen Glory with a short position of Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Ningbo MedicalSystem.
Diversification Opportunities for Shenzhen Glory and Ningbo MedicalSystem
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Ningbo is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory 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 Shenzhen Glory 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 Shenzhen Glory 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 Shenzhen Glory i.e., Shenzhen Glory and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Ningbo MedicalSystem
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to generate 0.87 times more return on investment than Ningbo MedicalSystem. However, Shenzhen Glory Medical is 1.15 times less risky than Ningbo MedicalSystem. It trades about 0.18 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.12 per unit of risk. If you would invest 257.00 in Shenzhen Glory Medical on August 25, 2024 and sell it today you would earn a total of 66.00 from holding Shenzhen Glory Medical or generate 25.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Ningbo MedicalSystem |
Shenzhen Glory and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Ningbo MedicalSystem
The main advantage of trading using opposite Shenzhen Glory and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory 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.| Shenzhen Glory vs. Lutian Machinery Co | Shenzhen Glory vs. China Longyuan Power | Shenzhen Glory vs. Changshu Tongrun Auto | Shenzhen Glory vs. PetroChina Co Ltd |
| Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Agricultural Bank of | Ningbo MedicalSystem vs. Bank of China |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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