Correlation Between Ningbo MedicalSystem and Zoy Home
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Zoy Home Furnishing, you can compare the effects of market volatilities on Ningbo MedicalSystem and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Zoy Home.
Diversification Opportunities for Ningbo MedicalSystem and Zoy Home
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Zoy is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Zoy Home go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Zoy Home
Assuming the 90 days trading horizon Ningbo MedicalSystem is expected to generate 1.7 times less return on investment than Zoy Home. In addition to that, Ningbo MedicalSystem is 1.11 times more volatile than Zoy Home Furnishing. It trades about 0.16 of its total potential returns per unit of risk. Zoy Home Furnishing is currently generating about 0.31 per unit of volatility. If you would invest 1,013 in Zoy Home Furnishing on September 4, 2024 and sell it today you would earn a total of 162.00 from holding Zoy Home Furnishing or generate 15.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Zoy Home Furnishing
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Zoy Home Furnishing |
Ningbo MedicalSystem and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Zoy Home
The main advantage of trading using opposite Ningbo MedicalSystem and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| Ningbo MedicalSystem vs. Kweichow Moutai Co | Ningbo MedicalSystem vs. Shenzhen Mindray Bio Medical | Ningbo MedicalSystem vs. Jiangsu Pacific Quartz | Ningbo MedicalSystem vs. G bits Network Technology |
| Zoy Home vs. Industrial and Commercial | Zoy Home vs. Agricultural Bank of | Zoy Home vs. China Construction Bank | Zoy Home vs. Bank of China |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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