Correlation Between Ningbo MedicalSystem and Zoje Resources
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Zoje Resources Investment, you can compare the effects of market volatilities on Ningbo MedicalSystem and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Zoje Resources.
Diversification Opportunities for Ningbo MedicalSystem and Zoje Resources
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Zoje is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Zoje Resources go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Zoje Resources
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.49 times more return on investment than Zoje Resources. However, Ningbo MedicalSystem Biotechnology is 2.04 times less risky than Zoje Resources. It trades about -0.49 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about -0.34 per unit of risk. If you would invest 1,158 in Ningbo MedicalSystem Biotechnology on October 16, 2024 and sell it today you would lose (182.00) from holding Ningbo MedicalSystem Biotechnology or give up 15.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Zoje Resources Investment
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Zoje Resources Investment |
Ningbo MedicalSystem and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Zoje Resources
The main advantage of trading using opposite Ningbo MedicalSystem and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' 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 |
| Zoje Resources vs. Ningbo MedicalSystem Biotechnology | Zoje Resources vs. Guotai Epoint Software | Zoje Resources vs. Shenzhen Topway Video | Zoje Resources vs. Thunder Software Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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