Correlation Between Ningbo MedicalSystem and Cultural Investment
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Cultural Investment Holdings, you can compare the effects of market volatilities on Ningbo MedicalSystem and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Cultural Investment.
Diversification Opportunities for Ningbo MedicalSystem and Cultural Investment
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Cultural is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Cultural Investment go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Cultural Investment
Assuming the 90 days trading horizon Ningbo MedicalSystem is expected to generate 2.88 times less return on investment than Cultural Investment. But when comparing it to its historical volatility, Ningbo MedicalSystem Biotechnology is 1.37 times less risky than Cultural Investment. It trades about 0.01 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 242.00 in Cultural Investment Holdings on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Cultural Investment Holdings or generate 0.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Cultural Investment Holdings
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Cultural Investment |
Ningbo MedicalSystem and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Cultural Investment
The main advantage of trading using opposite Ningbo MedicalSystem and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Ningbo MedicalSystem vs. Saurer Intelligent Technology | Ningbo MedicalSystem vs. Linewell Software Co | Ningbo MedicalSystem vs. Kuang Chi Technologies | Ningbo MedicalSystem vs. Keeson Technology Corp |
| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Bank of China |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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