Correlation Between Ningbo MedicalSystem and XinJiang GuoTong
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Ningbo MedicalSystem and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and XinJiang GuoTong.
Diversification Opportunities for Ningbo MedicalSystem and XinJiang GuoTong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and XinJiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and XinJiang GuoTong
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 1.02 times more return on investment than XinJiang GuoTong. However, Ningbo MedicalSystem is 1.02 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.14 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.09 per unit of risk. If you would invest 1,082 in Ningbo MedicalSystem Biotechnology on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Ningbo MedicalSystem Biotechnology or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Ningbo MedicalSystem |
| XinJiang GuoTong Pipeline |
Ningbo MedicalSystem and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and XinJiang GuoTong
The main advantage of trading using opposite Ningbo MedicalSystem and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Ningbo MedicalSystem vs. Chengdu Kanghua Biological | Ningbo MedicalSystem vs. Beijing Wantai Biological | Ningbo MedicalSystem vs. Suzhou Novoprotein Scientific | Ningbo MedicalSystem vs. Aluminum Corp of |
| XinJiang GuoTong vs. Iat Automobile Technology | XinJiang GuoTong vs. Sinomach Automobile Co | XinJiang GuoTong vs. Guangzhou Automobile Group | XinJiang GuoTong vs. Ningxia Younglight Chemicals |
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 Stocks Directory module to find actively traded stocks across global markets.
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