Correlation Between Ningbo MedicalSystem and Gansu Huangtai
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Ningbo MedicalSystem and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Gansu Huangtai.
Diversification Opportunities for Ningbo MedicalSystem and Gansu Huangtai
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Gansu is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Gansu Huangtai
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo MedicalSystem Biotechnology is 1.46 times less risky than Gansu Huangtai. The stock trades about -0.01 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,905 in Gansu Huangtai Wine marketing on October 15, 2024 and sell it today you would lose (327.00) from holding Gansu Huangtai Wine marketing or give up 17.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Gansu Huangtai Wine |
Ningbo MedicalSystem and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Gansu Huangtai
The main advantage of trading using opposite Ningbo MedicalSystem and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Ningbo MedicalSystem vs. Zoy Home Furnishing | Ningbo MedicalSystem vs. Postal Savings Bank | Ningbo MedicalSystem vs. Shanghai Material Trading | Ningbo MedicalSystem vs. Arrow Home Group |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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