Correlation Between Ningbo MedicalSystem and Tianjin Ruixin
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Tianjin Ruixin Technology, you can compare the effects of market volatilities on Ningbo MedicalSystem and Tianjin Ruixin 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 Tianjin Ruixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Tianjin Ruixin.
Diversification Opportunities for Ningbo MedicalSystem and Tianjin Ruixin
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Tianjin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Tianjin Ruixin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Ruixin Technology 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 Tianjin Ruixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Ruixin Technology has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Tianjin Ruixin go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Tianjin Ruixin
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to under-perform the Tianjin Ruixin. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo MedicalSystem Biotechnology is 2.05 times less risky than Tianjin Ruixin. The stock trades about -0.23 of its potential returns per unit of risk. The Tianjin Ruixin Technology is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,567 in Tianjin Ruixin Technology on October 25, 2024 and sell it today you would lose (118.00) from holding Tianjin Ruixin Technology or give up 7.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Tianjin Ruixin Technology
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Tianjin Ruixin Technology |
Ningbo MedicalSystem and Tianjin Ruixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Tianjin Ruixin
The main advantage of trading using opposite Ningbo MedicalSystem and Tianjin Ruixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Tianjin Ruixin 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 Tianjin Ruixin will offset losses from the drop in Tianjin Ruixin's long position.| Ningbo MedicalSystem vs. Agricultural Bank of | Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. Bank of China | Ningbo MedicalSystem vs. China Construction Bank |
| Tianjin Ruixin vs. Zijin Mining Group | Tianjin Ruixin vs. Wanhua Chemical Group | Tianjin Ruixin vs. Baoshan Iron Steel | Tianjin Ruixin vs. Rongsheng Petrochemical 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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