Correlation Between Ningbo MedicalSystem and CITIC Guoan
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and CITIC Guoan Information, you can compare the effects of market volatilities on Ningbo MedicalSystem and CITIC Guoan 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 CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and CITIC Guoan.
Diversification Opportunities for Ningbo MedicalSystem and CITIC Guoan
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and CITIC is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information 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 CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and CITIC Guoan go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and CITIC Guoan
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to under-perform the CITIC Guoan. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo MedicalSystem Biotechnology is 1.1 times less risky than CITIC Guoan. The stock trades about -0.01 of its potential returns per unit of risk. The CITIC Guoan Information is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 263.00 in CITIC Guoan Information on October 12, 2024 and sell it today you would earn a total of 21.00 from holding CITIC Guoan Information or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. CITIC Guoan Information
Performance |
| Timeline |
| Ningbo MedicalSystem |
| CITIC Guoan Information |
Ningbo MedicalSystem and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and CITIC Guoan
The main advantage of trading using opposite Ningbo MedicalSystem and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Ningbo MedicalSystem vs. CSSC Offshore Marine | Ningbo MedicalSystem vs. HanS Laser Tech | Ningbo MedicalSystem vs. Guangdong Transtek Medical | Ningbo MedicalSystem vs. Nanjing Vishee Medical |
| CITIC Guoan vs. Ningbo Tech Bank Co | CITIC Guoan vs. GRIPM Advanced Materials | CITIC Guoan vs. GRG Banking Equipment | CITIC Guoan vs. Shanghai Phichem Material |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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