Correlation Between Ningbo MedicalSystem and JiShi Media
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and JiShi Media Co, you can compare the effects of market volatilities on Ningbo MedicalSystem and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and JiShi Media.
Diversification Opportunities for Ningbo MedicalSystem and JiShi Media
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and JiShi is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and JiShi Media go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and JiShi Media
Assuming the 90 days trading horizon Ningbo MedicalSystem is expected to generate 2.04 times less return on investment than JiShi Media. But when comparing it to its historical volatility, Ningbo MedicalSystem Biotechnology is 2.04 times less risky than JiShi Media. It trades about 0.16 of its potential returns per unit of risk. JiShi Media Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 174.00 in JiShi Media Co on December 4, 2024 and sell it today you would earn a total of 23.00 from holding JiShi Media Co or generate 13.22% 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. JiShi Media Co
Performance |
| Timeline |
| Ningbo MedicalSystem |
| JiShi Media |
Ningbo MedicalSystem and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and JiShi Media
The main advantage of trading using opposite Ningbo MedicalSystem and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.The idea behind Ningbo MedicalSystem Biotechnology and JiShi Media Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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