Correlation Between Ningbo MedicalSystem and Beijing Kaiwen
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Beijing Kaiwen Education, you can compare the effects of market volatilities on Ningbo MedicalSystem and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Beijing Kaiwen.
Diversification Opportunities for Ningbo MedicalSystem and Beijing Kaiwen
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Beijing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Beijing Kaiwen
Assuming the 90 days trading horizon Ningbo MedicalSystem is expected to generate 13.52 times less return on investment than Beijing Kaiwen. But when comparing it to its historical volatility, Ningbo MedicalSystem Biotechnology is 1.81 times less risky than Beijing Kaiwen. It trades about 0.01 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 530.00 in Beijing Kaiwen Education on September 12, 2024 and sell it today you would earn a total of 39.00 from holding Beijing Kaiwen Education or generate 7.36% 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. Beijing Kaiwen Education
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Beijing Kaiwen Education |
Ningbo MedicalSystem and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Beijing Kaiwen
The main advantage of trading using opposite Ningbo MedicalSystem and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's 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 |
| Beijing Kaiwen vs. Agricultural Bank of | Beijing Kaiwen vs. Industrial and Commercial | Beijing Kaiwen vs. Bank of China | Beijing Kaiwen vs. PetroChina Co Ltd |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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