Correlation Between Ningbo MedicalSystem and Success Electronics
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Success Electronics, you can compare the effects of market volatilities on Ningbo MedicalSystem and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Success Electronics.
Diversification Opportunities for Ningbo MedicalSystem and Success Electronics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Success is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Success Electronics go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Success Electronics
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.93 times more return on investment than Success Electronics. However, Ningbo MedicalSystem Biotechnology is 1.08 times less risky than Success Electronics. It trades about 0.02 of its potential returns per unit of risk. Success Electronics is currently generating about -0.03 per unit of risk. If you would invest 1,154 in Ningbo MedicalSystem Biotechnology on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Ningbo MedicalSystem Biotechnology or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Success Electronics
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Success Electronics |
Ningbo MedicalSystem and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Success Electronics
The main advantage of trading using opposite Ningbo MedicalSystem and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Ningbo MedicalSystem vs. Cultural Investment Holdings | Ningbo MedicalSystem vs. Gome Telecom Equipment | Ningbo MedicalSystem vs. Holitech Technology Co | Ningbo MedicalSystem vs. Zotye Automobile Co |
| Success Electronics vs. Gansu Jiu Steel | Success Electronics vs. Shandong Mining Machinery | Success Electronics vs. Aba Chemicals Corp | Success Electronics vs. BlueFocus Communication Group |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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