Correlation Between Ningbo MedicalSystem and GreenTech Environmental
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and GreenTech Environmental Co, you can compare the effects of market volatilities on Ningbo MedicalSystem and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and GreenTech Environmental.
Diversification Opportunities for Ningbo MedicalSystem and GreenTech Environmental
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and GreenTech is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and GreenTech Environmental
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.86 times more return on investment than GreenTech Environmental. However, Ningbo MedicalSystem Biotechnology is 1.16 times less risky than GreenTech Environmental. It trades about 0.01 of its potential returns per unit of risk. GreenTech Environmental Co is currently generating about -0.01 per unit of risk. If you would invest 1,187 in Ningbo MedicalSystem Biotechnology on August 31, 2024 and sell it today you would lose (37.00) from holding Ningbo MedicalSystem Biotechnology or give up 3.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. GreenTech Environmental Co
Performance |
| Timeline |
| Ningbo MedicalSystem |
| GreenTech Environmental |
Ningbo MedicalSystem and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and GreenTech Environmental
The main advantage of trading using opposite Ningbo MedicalSystem and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Ningbo MedicalSystem vs. Changjiang Publishing Media | Ningbo MedicalSystem vs. HanS Laser Tech | Ningbo MedicalSystem vs. Northern United Publishing | Ningbo MedicalSystem vs. Chinese Universe Publishing |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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