Correlation Between Ningbo MedicalSystem and Leaguer Shenzhen
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Leaguer Shenzhen MicroElectronics, you can compare the effects of market volatilities on Ningbo MedicalSystem and Leaguer Shenzhen 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 Leaguer Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Leaguer Shenzhen.
Diversification Opportunities for Ningbo MedicalSystem and Leaguer Shenzhen
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Leaguer is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Leaguer Shenzhen MicroElectron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leaguer Shenzhen Mic 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 Leaguer Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leaguer Shenzhen Mic has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Leaguer Shenzhen go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Leaguer Shenzhen
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to generate 0.96 times more return on investment than Leaguer Shenzhen. However, Ningbo MedicalSystem Biotechnology is 1.04 times less risky than Leaguer Shenzhen. It trades about 0.04 of its potential returns per unit of risk. Leaguer Shenzhen MicroElectronics is currently generating about -0.03 per unit of risk. If you would invest 1,168 in Ningbo MedicalSystem Biotechnology on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Ningbo MedicalSystem Biotechnology or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Leaguer Shenzhen MicroElectron
Performance |
| Timeline |
| Ningbo MedicalSystem |
| Leaguer Shenzhen Mic |
Ningbo MedicalSystem and Leaguer Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo MedicalSystem and Leaguer Shenzhen
The main advantage of trading using opposite Ningbo MedicalSystem and Leaguer Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Leaguer Shenzhen 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 Leaguer Shenzhen will offset losses from the drop in Leaguer Shenzhen's long position.| Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Bank of China | Ningbo MedicalSystem vs. Agricultural Bank of |
| Leaguer Shenzhen vs. Nanjing Putian Telecommunications | Leaguer Shenzhen vs. Tianjin Realty Development | Leaguer Shenzhen vs. Kangyue Technology Co | Leaguer Shenzhen vs. Shenzhen Hifuture Electric |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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