Correlation Between Ningbo MedicalSystem and China Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and China Construction Bank, you can compare the effects of market volatilities on Ningbo MedicalSystem and China Construction 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 China Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and China Construction.
Diversification Opportunities for Ningbo MedicalSystem and China Construction
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and China is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and China Construction Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Construction Bank 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 China Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Construction Bank has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and China Construction go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and China Construction
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 3.21 times more return on investment than China Construction. However, Ningbo MedicalSystem is 3.21 times more volatile than China Construction Bank. It trades about 0.14 of its potential returns per unit of risk. China Construction Bank is currently generating about -0.07 per unit of risk. If you would invest 1,082 in Ningbo MedicalSystem Biotechnology on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Ningbo MedicalSystem Biotechnology or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. China Construction Bank
Performance |
| Timeline |
| Ningbo MedicalSystem |
| China Construction Bank |
Ningbo MedicalSystem and China Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and China Construction
The main advantage of trading using opposite Ningbo MedicalSystem and China Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, China Construction 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 China Construction will offset losses from the drop in China Construction's long position.| Ningbo MedicalSystem vs. Chengdu Kanghua Biological | Ningbo MedicalSystem vs. Beijing Wantai Biological | Ningbo MedicalSystem vs. Suzhou Novoprotein Scientific | Ningbo MedicalSystem vs. Aluminum Corp of |
| China Construction vs. DO Home Collection | China Construction vs. China National Software | China Construction vs. Guangdong Jingyi Metal | China Construction vs. Guocheng Mining 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |