Correlation Between Ningbo MedicalSystem and Shaanxi Broadcast
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Ningbo MedicalSystem and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Shaanxi Broadcast.
Diversification Opportunities for Ningbo MedicalSystem and Shaanxi Broadcast
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Shaanxi is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Shaanxi Broadcast
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.82 times more return on investment than Shaanxi Broadcast. However, Ningbo MedicalSystem Biotechnology is 1.22 times less risky than Shaanxi Broadcast. It trades about -0.16 of its potential returns per unit of risk. Shaanxi Broadcast TV is currently generating about -0.18 per unit of risk. If you would invest 1,168 in Ningbo MedicalSystem Biotechnology on October 11, 2024 and sell it today you would lose (170.00) from holding Ningbo MedicalSystem Biotechnology or give up 14.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Shaanxi Broadcast |
Ningbo MedicalSystem and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Shaanxi Broadcast
The main advantage of trading using opposite Ningbo MedicalSystem and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Ningbo MedicalSystem vs. City Development Environment | Ningbo MedicalSystem vs. Hunan Tyen Machinery | Ningbo MedicalSystem vs. Masterwork Machinery | Ningbo MedicalSystem vs. Jinlong Machinery Electronic |
| Shaanxi Broadcast vs. Nanxing Furniture Machinery | Shaanxi Broadcast vs. Shaanxi Construction Machinery | Shaanxi Broadcast vs. Shenwu Energy Saving | Shaanxi Broadcast vs. Sinomach General Machinery |
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.
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