Correlation Between King Strong and Ningbo MedicalSystem
Specify exactly 2 symbols:
By analyzing existing cross correlation between King Strong New Material and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on King Strong and Ningbo MedicalSystem 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 King Strong with a short position of Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Ningbo MedicalSystem.
Diversification Opportunities for King Strong and Ningbo MedicalSystem
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between King and Ningbo is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem and King Strong 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 King Strong New Material are associated (or correlated) with Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of King Strong i.e., King Strong and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between King Strong and Ningbo MedicalSystem
Assuming the 90 days trading horizon King Strong New Material is expected to under-perform the Ningbo MedicalSystem. In addition to that, King Strong is 1.58 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about -0.16 of its total potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about -0.15 per unit of volatility. If you would invest 1,075 in Ningbo MedicalSystem Biotechnology on October 26, 2024 and sell it today you would lose (57.00) from holding Ningbo MedicalSystem Biotechnology or give up 5.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| King Strong New |
| Ningbo MedicalSystem |
King Strong and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Ningbo MedicalSystem
The main advantage of trading using opposite King Strong and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| King Strong vs. Industrial and Commercial | King Strong vs. China Construction Bank | King Strong vs. Agricultural Bank of | King Strong 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |