Correlation Between Ningbo MedicalSystem and Chengdu Spaceon
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Ningbo MedicalSystem and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Chengdu Spaceon.
Diversification Opportunities for Ningbo MedicalSystem and Chengdu Spaceon
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Chengdu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Chengdu Spaceon
Assuming the 90 days trading horizon Ningbo MedicalSystem is expected to generate 1.13 times less return on investment than Chengdu Spaceon. But when comparing it to its historical volatility, Ningbo MedicalSystem Biotechnology is 1.05 times less risky than Chengdu Spaceon. It trades about 0.12 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,201 in Chengdu Spaceon Electronics on August 29, 2024 and sell it today you would earn a total of 309.00 from holding Chengdu Spaceon Electronics or generate 25.73% 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. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Chengdu Spaceon Elec |
Ningbo MedicalSystem and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Chengdu Spaceon
The main advantage of trading using opposite Ningbo MedicalSystem and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Agricultural Bank of | Ningbo MedicalSystem vs. Bank of China |
| Chengdu Spaceon vs. China State Construction | Chengdu Spaceon vs. Huafa Industrial Co | Chengdu Spaceon vs. China International Capital | Chengdu Spaceon vs. Kweichow Moutai 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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