Correlation Between Shenzhen Inovance and Ningbo Boway
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By analyzing existing cross correlation between Shenzhen Inovance Tech and Ningbo Boway Alloy, you can compare the effects of market volatilities on Shenzhen Inovance and Ningbo Boway 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 Inovance with a short position of Ningbo Boway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Inovance and Ningbo Boway.
Diversification Opportunities for Shenzhen Inovance and Ningbo Boway
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenzhen and Ningbo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Inovance Tech and Ningbo Boway Alloy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Boway Alloy and Shenzhen Inovance 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 Inovance Tech are associated (or correlated) with Ningbo Boway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Boway Alloy has no effect on the direction of Shenzhen Inovance i.e., Shenzhen Inovance and Ningbo Boway go up and down completely randomly.
Pair Corralation between Shenzhen Inovance and Ningbo Boway
Assuming the 90 days trading horizon Shenzhen Inovance Tech is expected to under-perform the Ningbo Boway. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Inovance Tech is 2.36 times less risky than Ningbo Boway. The stock trades about 0.0 of its potential returns per unit of risk. The Ningbo Boway Alloy is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,764 in Ningbo Boway Alloy on October 15, 2024 and sell it today you would earn a total of 124.00 from holding Ningbo Boway Alloy or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.95% |
| Values | Daily Returns |
Shenzhen Inovance Tech vs. Ningbo Boway Alloy
Performance |
| Timeline |
| Shenzhen Inovance Tech |
| Ningbo Boway Alloy |
Shenzhen Inovance and Ningbo Boway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Inovance and Ningbo Boway
The main advantage of trading using opposite Shenzhen Inovance and Ningbo Boway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Inovance position performs unexpectedly, Ningbo Boway 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 Boway will offset losses from the drop in Ningbo Boway's long position.| Shenzhen Inovance vs. Rising Nonferrous Metals | Shenzhen Inovance vs. Tibet Huayu Mining | Shenzhen Inovance vs. Beijing Jiaman Dress | Shenzhen Inovance vs. Anhui Jinhe Industrial |
| Ningbo Boway vs. Huasi Agricultural Development | Ningbo Boway vs. Allied Machinery Co | Ningbo Boway vs. Gifore Agricultural Machinery | Ningbo Boway vs. Zoje Resources Investment |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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