Correlation Between Ningbo MedicalSystem and JS Corrugating
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and JS Corrugating Machinery, you can compare the effects of market volatilities on Ningbo MedicalSystem and JS Corrugating 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 Ningbo MedicalSystem with a short position of JS Corrugating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and JS Corrugating.
Diversification Opportunities for Ningbo MedicalSystem and JS Corrugating
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and 000821 is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and JS Corrugating Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Corrugating Machinery and Ningbo MedicalSystem 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 Ningbo MedicalSystem Biotechnology are associated (or correlated) with JS Corrugating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Corrugating Machinery has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and JS Corrugating go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and JS Corrugating
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.77 times more return on investment than JS Corrugating. However, Ningbo MedicalSystem Biotechnology is 1.29 times less risky than JS Corrugating. It trades about -0.16 of its potential returns per unit of risk. JS Corrugating Machinery is currently generating about -0.14 per unit of risk. If you would invest 1,143 in Ningbo MedicalSystem Biotechnology on September 28, 2024 and sell it today you would lose (64.00) from holding Ningbo MedicalSystem Biotechnology or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. JS Corrugating Machinery
Performance |
| Timeline |
| Ningbo MedicalSystem |
| JS Corrugating Machinery |
Ningbo MedicalSystem and JS Corrugating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and JS Corrugating
The main advantage of trading using opposite Ningbo MedicalSystem and JS Corrugating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, JS Corrugating 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 JS Corrugating will offset losses from the drop in JS Corrugating's long position.| Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. Agricultural Bank of | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Bank of China |
| JS Corrugating vs. Bank of China | JS Corrugating vs. Kweichow Moutai Co | JS Corrugating vs. PetroChina Co Ltd | JS Corrugating vs. Bank of Communications |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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