Correlation Between Ningbo MedicalSystem and Shandong Sino
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Shandong Sino Agri United, you can compare the effects of market volatilities on Ningbo MedicalSystem and Shandong Sino 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 Shandong Sino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Shandong Sino.
Diversification Opportunities for Ningbo MedicalSystem and Shandong Sino
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Shandong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri 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 Shandong Sino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Shandong Sino go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Shandong Sino
Assuming the 90 days trading horizon Ningbo MedicalSystem is expected to generate 3.57 times less return on investment than Shandong Sino. But when comparing it to its historical volatility, Ningbo MedicalSystem Biotechnology is 1.55 times less risky than Shandong Sino. It trades about 0.14 of its potential returns per unit of risk. Shandong Sino Agri United is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,388 in Shandong Sino Agri United on September 3, 2024 and sell it today you would earn a total of 409.00 from holding Shandong Sino Agri United or generate 29.47% 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. Shandong Sino Agri United
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Shandong Sino Agri |
Ningbo MedicalSystem and Shandong Sino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Shandong Sino
The main advantage of trading using opposite Ningbo MedicalSystem and Shandong Sino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Shandong Sino 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 Shandong Sino will offset losses from the drop in Shandong Sino'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 |
| Shandong Sino vs. Jiangsu Jinling Sports | Shandong Sino vs. Hainan Mining Co | Shandong Sino vs. Fujian Oriental Silver | Shandong Sino vs. JCHX Mining Management |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |