Correlation Between Boai NKY and Inner Mongolia
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By analyzing existing cross correlation between Boai NKY Pharmaceuticals and Inner Mongolia BaoTou, you can compare the effects of market volatilities on Boai NKY and Inner Mongolia 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 Boai NKY with a short position of Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boai NKY and Inner Mongolia.
Diversification Opportunities for Boai NKY and Inner Mongolia
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boai and Inner is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Boai NKY Pharmaceuticals and Inner Mongolia BaoTou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia BaoTou and Boai NKY 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 Boai NKY Pharmaceuticals are associated (or correlated) with Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia BaoTou has no effect on the direction of Boai NKY i.e., Boai NKY and Inner Mongolia go up and down completely randomly.
Pair Corralation between Boai NKY and Inner Mongolia
Assuming the 90 days trading horizon Boai NKY Pharmaceuticals is expected to generate 1.0 times more return on investment than Inner Mongolia. However, Boai NKY is 1.0 times more volatile than Inner Mongolia BaoTou. It trades about 0.22 of its potential returns per unit of risk. Inner Mongolia BaoTou is currently generating about 0.11 per unit of risk. If you would invest 1,264 in Boai NKY Pharmaceuticals on September 5, 2024 and sell it today you would earn a total of 215.00 from holding Boai NKY Pharmaceuticals or generate 17.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boai NKY Pharmaceuticals vs. Inner Mongolia BaoTou
Performance |
| Timeline |
| Boai NKY Pharmaceuticals |
| Inner Mongolia BaoTou |
Boai NKY and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boai NKY and Inner Mongolia
The main advantage of trading using opposite Boai NKY and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boai NKY position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Boai NKY vs. Zijin Mining Group | Boai NKY vs. Wanhua Chemical Group | Boai NKY vs. Baoshan Iron Steel | Boai NKY vs. Rongsheng Petrochemical Co |
| Inner Mongolia vs. Northking Information Technology | Inner Mongolia vs. ROPEOK Technology Group | Inner Mongolia vs. Guangzhou KingTeller Technology | Inner Mongolia vs. Xiamen Goldenhome Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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