Correlation Between CSPC Innovation and Ningbo Jintian
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By analyzing existing cross correlation between CSPC Innovation Pharmaceutical and Ningbo Jintian Copper, you can compare the effects of market volatilities on CSPC Innovation and Ningbo Jintian 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 CSPC Innovation with a short position of Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSPC Innovation and Ningbo Jintian.
Diversification Opportunities for CSPC Innovation and Ningbo Jintian
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CSPC and Ningbo is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding CSPC Innovation Pharmaceutical and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper and CSPC Innovation 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 CSPC Innovation Pharmaceutical are associated (or correlated) with Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of CSPC Innovation i.e., CSPC Innovation and Ningbo Jintian go up and down completely randomly.
Pair Corralation between CSPC Innovation and Ningbo Jintian
Assuming the 90 days trading horizon CSPC Innovation Pharmaceutical is expected to generate 1.81 times more return on investment than Ningbo Jintian. However, CSPC Innovation is 1.81 times more volatile than Ningbo Jintian Copper. It trades about 0.12 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about -0.07 per unit of risk. If you would invest 2,612 in CSPC Innovation Pharmaceutical on October 24, 2024 and sell it today you would earn a total of 208.00 from holding CSPC Innovation Pharmaceutical or generate 7.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSPC Innovation Pharmaceutical vs. Ningbo Jintian Copper
Performance |
| Timeline |
| CSPC Innovation Phar |
| Ningbo Jintian Copper |
CSPC Innovation and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSPC Innovation and Ningbo Jintian
The main advantage of trading using opposite CSPC Innovation and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSPC Innovation position performs unexpectedly, Ningbo Jintian 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 Jintian will offset losses from the drop in Ningbo Jintian's long position.| CSPC Innovation vs. Nuode Investment Co | CSPC Innovation vs. Henan Shuanghui Investment | CSPC Innovation vs. Harbin Hatou Investment | CSPC Innovation vs. Heren Health Co |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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