Correlation Between Ningbo MedicalSystem and Guangzhou Seagull
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Ningbo MedicalSystem and Guangzhou Seagull 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 Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Guangzhou Seagull.
Diversification Opportunities for Ningbo MedicalSystem and Guangzhou Seagull
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Guangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen 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 Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Guangzhou Seagull
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.81 times more return on investment than Guangzhou Seagull. However, Ningbo MedicalSystem Biotechnology is 1.23 times less risky than Guangzhou Seagull. It trades about 0.0 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.01 per unit of risk. If you would invest 1,229 in Ningbo MedicalSystem Biotechnology on November 28, 2024 and sell it today you would lose (109.00) from holding Ningbo MedicalSystem Biotechnology or give up 8.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Guangzhou Seagull Kitchen |
Ningbo MedicalSystem and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Guangzhou Seagull
The main advantage of trading using opposite Ningbo MedicalSystem and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.The idea behind Ningbo MedicalSystem Biotechnology and Guangzhou Seagull Kitchen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Guangzhou Seagull vs. Hubei Forbon Technology | Guangzhou Seagull vs. Linewell Software Co | Guangzhou Seagull vs. Digiwin Software Co | Guangzhou Seagull vs. Glodon Software 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |