Correlation Between Strait Innovation and Ningbo Tech
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By analyzing existing cross correlation between Strait Innovation Internet and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Strait Innovation and Ningbo Tech 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 Strait Innovation with a short position of Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strait Innovation and Ningbo Tech.
Diversification Opportunities for Strait Innovation and Ningbo Tech
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Strait and Ningbo is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Strait Innovation Internet and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank and Strait Innovation 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 Strait Innovation Internet are associated (or correlated) with Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Strait Innovation i.e., Strait Innovation and Ningbo Tech go up and down completely randomly.
Pair Corralation between Strait Innovation and Ningbo Tech
Assuming the 90 days trading horizon Strait Innovation Internet is expected to under-perform the Ningbo Tech. In addition to that, Strait Innovation is 1.54 times more volatile than Ningbo Tech Bank Co. It trades about -0.07 of its total potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about 0.18 per unit of volatility. If you would invest 280.00 in Ningbo Tech Bank Co on October 28, 2024 and sell it today you would earn a total of 24.00 from holding Ningbo Tech Bank Co or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strait Innovation Internet vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Strait Innovation |
| Ningbo Tech Bank |
Strait Innovation and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strait Innovation and Ningbo Tech
The main advantage of trading using opposite Strait Innovation and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strait Innovation position performs unexpectedly, Ningbo Tech 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 Tech will offset losses from the drop in Ningbo Tech's long position.| Strait Innovation vs. Suzhou Weizhixiang Food | Strait Innovation vs. Holitech Technology Co | Strait Innovation vs. Northking Information Technology | Strait Innovation vs. Yankershop Food Co |
| Ningbo Tech vs. Youyou Foods Co | Ningbo Tech vs. Ping An Insurance | Ningbo Tech vs. HeNan Splendor Science | Ningbo Tech vs. Qingdao Foods 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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