Correlation Between Ningbo MedicalSystem and Changjiang Publishing
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Changjiang Publishing Media, you can compare the effects of market volatilities on Ningbo MedicalSystem and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Changjiang Publishing.
Diversification Opportunities for Ningbo MedicalSystem and Changjiang Publishing
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Changjiang is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Changjiang Publishing
Assuming the 90 days trading horizon Ningbo MedicalSystem is expected to generate 8.72 times less return on investment than Changjiang Publishing. But when comparing it to its historical volatility, Ningbo MedicalSystem Biotechnology is 1.01 times less risky than Changjiang Publishing. It trades about 0.01 of its potential returns per unit of risk. Changjiang Publishing Media is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 875.00 in Changjiang Publishing Media on September 12, 2024 and sell it today you would earn a total of 47.00 from holding Changjiang Publishing Media or generate 5.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Changjiang Publishing Media
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Changjiang Publishing |
Ningbo MedicalSystem and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Changjiang Publishing
The main advantage of trading using opposite Ningbo MedicalSystem and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing's long position.| Ningbo MedicalSystem vs. Cultural Investment Holdings | Ningbo MedicalSystem vs. Gome Telecom Equipment | Ningbo MedicalSystem vs. Holitech Technology Co | Ningbo MedicalSystem vs. Zotye Automobile 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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