Correlation Between Ningbo MedicalSystem and Jiangsu Broadcasting
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Ningbo MedicalSystem and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Jiangsu Broadcasting.
Diversification Opportunities for Ningbo MedicalSystem and Jiangsu Broadcasting
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Jiangsu is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Jiangsu Broadcasting
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to under-perform the Jiangsu Broadcasting. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo MedicalSystem Biotechnology is 1.18 times less risky than Jiangsu Broadcasting. The stock trades about -0.16 of its potential returns per unit of risk. The Jiangsu Broadcasting Cable is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 363.00 in Jiangsu Broadcasting Cable on October 11, 2024 and sell it today you would lose (44.00) from holding Jiangsu Broadcasting Cable or give up 12.12% 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. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Jiangsu Broadcasting |
Ningbo MedicalSystem and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Jiangsu Broadcasting
The main advantage of trading using opposite Ningbo MedicalSystem and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting'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 |
| Jiangsu Broadcasting vs. Guangdong Xiongsu Technology | Jiangsu Broadcasting vs. ROPEOK Technology Group | Jiangsu Broadcasting vs. 360 Security Technology | Jiangsu Broadcasting vs. Songz Automobile Air |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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