Correlation Between Ningbo MedicalSystem and Bangyan Technology
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Bangyan Technology Co, you can compare the effects of market volatilities on Ningbo MedicalSystem and Bangyan Technology 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 Bangyan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Bangyan Technology.
Diversification Opportunities for Ningbo MedicalSystem and Bangyan Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Bangyan is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Bangyan Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangyan Technology 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 Bangyan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangyan Technology has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Bangyan Technology go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Bangyan Technology
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.84 times more return on investment than Bangyan Technology. However, Ningbo MedicalSystem Biotechnology is 1.19 times less risky than Bangyan Technology. It trades about 0.02 of its potential returns per unit of risk. Bangyan Technology Co is currently generating about -0.02 per unit of risk. If you would invest 1,110 in Ningbo MedicalSystem Biotechnology on September 4, 2024 and sell it today you would earn a total of 67.00 from holding Ningbo MedicalSystem Biotechnology or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Bangyan Technology Co
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Bangyan Technology |
Ningbo MedicalSystem and Bangyan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Bangyan Technology
The main advantage of trading using opposite Ningbo MedicalSystem and Bangyan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Bangyan Technology 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 Bangyan Technology will offset losses from the drop in Bangyan Technology'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 |
| Bangyan Technology vs. Industrial and Commercial | Bangyan Technology vs. China Construction Bank | Bangyan Technology vs. Bank of China | Bangyan Technology vs. Agricultural Bank of |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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