Correlation Between Ningbo MedicalSystem and Fujian Boss
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Fujian Boss Software, you can compare the effects of market volatilities on Ningbo MedicalSystem and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Fujian Boss.
Diversification Opportunities for Ningbo MedicalSystem and Fujian Boss
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Fujian is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Fujian Boss go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Fujian Boss
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.85 times more return on investment than Fujian Boss. However, Ningbo MedicalSystem Biotechnology is 1.18 times less risky than Fujian Boss. It trades about -0.41 of its potential returns per unit of risk. Fujian Boss Software is currently generating about -0.54 per unit of risk. If you would invest 1,163 in Ningbo MedicalSystem Biotechnology on October 11, 2024 and sell it today you would lose (165.00) from holding Ningbo MedicalSystem Biotechnology or give up 14.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Fujian Boss Software
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Fujian Boss Software |
Ningbo MedicalSystem and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Fujian Boss
The main advantage of trading using opposite Ningbo MedicalSystem and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' long position.| Ningbo MedicalSystem vs. City Development Environment | Ningbo MedicalSystem vs. Hunan Tyen Machinery | Ningbo MedicalSystem vs. Masterwork Machinery | Ningbo MedicalSystem vs. Jinlong Machinery Electronic |
| Fujian Boss vs. Anhui Tongguan Copper | Fujian Boss vs. Shanghai CEO Environmental | Fujian Boss vs. Sanbo Hospital Management | Fujian Boss vs. Harvest Fund 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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