Correlation Between Ningbo MedicalSystem and Shenzhen
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Shenzhen AV Display Co, you can compare the effects of market volatilities on Ningbo MedicalSystem and Shenzhen 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 Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Shenzhen.
Diversification Opportunities for Ningbo MedicalSystem and Shenzhen
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Shenzhen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Shenzhen AV Display Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen AV Display 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 Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen AV Display has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Shenzhen go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Shenzhen
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to under-perform the Shenzhen. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo MedicalSystem Biotechnology is 1.35 times less risky than Shenzhen. The stock trades about -0.01 of its potential returns per unit of risk. The Shenzhen AV Display Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,523 in Shenzhen AV Display Co on October 16, 2024 and sell it today you would lose (614.00) from holding Shenzhen AV Display Co or give up 17.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Shenzhen AV Display Co
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Shenzhen AV Display |
Ningbo MedicalSystem and Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Shenzhen
The main advantage of trading using opposite Ningbo MedicalSystem and Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Shenzhen 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 Shenzhen will offset losses from the drop in Shenzhen's long position.| Ningbo MedicalSystem vs. Zoy Home Furnishing | Ningbo MedicalSystem vs. Postal Savings Bank | Ningbo MedicalSystem vs. Shanghai Material Trading | Ningbo MedicalSystem vs. Arrow Home Group |
| Shenzhen vs. Shandong Sanyuan Biotechnology | Shenzhen vs. Ningbo MedicalSystem Biotechnology | Shenzhen vs. Universal Scientific Industrial | Shenzhen vs. Guangdong Jingyi Metal |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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