Correlation Between Ningbo MedicalSystem and Fujian Nanwang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Fujian Nanwang Environment, you can compare the effects of market volatilities on Ningbo MedicalSystem and Fujian Nanwang 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 Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Fujian Nanwang.
Diversification Opportunities for Ningbo MedicalSystem and Fujian Nanwang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Fujian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Fujian Nanwang
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 1.49 times more return on investment than Fujian Nanwang. However, Ningbo MedicalSystem is 1.49 times more volatile than Fujian Nanwang Environment. It trades about 0.14 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.17 per unit of risk. If you would invest 1,082 in Ningbo MedicalSystem Biotechnology on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Ningbo MedicalSystem Biotechnology or generate 7.3% 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. Fujian Nanwang Environment
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Fujian Nanwang Envir |
Ningbo MedicalSystem and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Fujian Nanwang
The main advantage of trading using opposite Ningbo MedicalSystem and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Fujian Nanwang 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 Nanwang will offset losses from the drop in Fujian Nanwang'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 |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Rongsheng Petrochemical Co | Fujian Nanwang vs. Hoshine Silicon Ind |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |