Correlation Between Ningbo MedicalSystem and Shenzhen Clou
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Ningbo MedicalSystem and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Shenzhen Clou.
Diversification Opportunities for Ningbo MedicalSystem and Shenzhen Clou
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Shenzhen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Shenzhen Clou
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.45 times more return on investment than Shenzhen Clou. However, Ningbo MedicalSystem Biotechnology is 2.24 times less risky than Shenzhen Clou. It trades about -0.42 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about -0.2 per unit of risk. If you would invest 1,169 in Ningbo MedicalSystem Biotechnology on October 12, 2024 and sell it today you would lose (172.00) from holding Ningbo MedicalSystem Biotechnology or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Shenzhen Clou Electronics |
Ningbo MedicalSystem and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Shenzhen Clou
The main advantage of trading using opposite Ningbo MedicalSystem and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou'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 |
| Shenzhen Clou vs. Sunny Loan Top | Shenzhen Clou vs. Juneyao Airlines | Shenzhen Clou vs. Ningbo MedicalSystem Biotechnology | Shenzhen Clou vs. Beijing Jiaman Dress |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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