Correlation Between Ningbo MedicalSystem and ButOne Information
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and ButOne Information Corp, you can compare the effects of market volatilities on Ningbo MedicalSystem and ButOne Information 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 ButOne Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and ButOne Information.
Diversification Opportunities for Ningbo MedicalSystem and ButOne Information
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and ButOne is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and ButOne Information Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ButOne Information Corp 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 ButOne Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ButOne Information Corp has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and ButOne Information go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and ButOne Information
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to under-perform the ButOne Information. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo MedicalSystem Biotechnology is 1.3 times less risky than ButOne Information. The stock trades about -0.01 of its potential returns per unit of risk. The ButOne Information Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,437 in ButOne Information Corp on October 12, 2024 and sell it today you would lose (420.00) from holding ButOne Information Corp or give up 17.23% 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. ButOne Information Corp
Performance |
| Timeline |
| Ningbo MedicalSystem |
| ButOne Information Corp |
Ningbo MedicalSystem and ButOne Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and ButOne Information
The main advantage of trading using opposite Ningbo MedicalSystem and ButOne Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, ButOne Information 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 ButOne Information will offset losses from the drop in ButOne Information's long position.| Ningbo MedicalSystem vs. CSSC Offshore Marine | Ningbo MedicalSystem vs. HanS Laser Tech | Ningbo MedicalSystem vs. Guangdong Transtek Medical | Ningbo MedicalSystem vs. Nanjing Vishee Medical |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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