Correlation Between Ningbo Bohui and Guangzhou Jointas
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By analyzing existing cross correlation between Ningbo Bohui Chemical and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Ningbo Bohui and Guangzhou Jointas 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 Bohui with a short position of Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Bohui and Guangzhou Jointas.
Diversification Opportunities for Ningbo Bohui and Guangzhou Jointas
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Bohui Chemical and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas and Ningbo Bohui 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 Bohui Chemical are associated (or correlated) with Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Ningbo Bohui i.e., Ningbo Bohui and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Ningbo Bohui and Guangzhou Jointas
Assuming the 90 days trading horizon Ningbo Bohui is expected to generate 1.44 times less return on investment than Guangzhou Jointas. In addition to that, Ningbo Bohui is 1.62 times more volatile than Guangzhou Jointas Chemical. It trades about 0.02 of its total potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about 0.04 per unit of volatility. If you would invest 499.00 in Guangzhou Jointas Chemical on August 29, 2024 and sell it today you would earn a total of 53.00 from holding Guangzhou Jointas Chemical or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Bohui Chemical vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Ningbo Bohui Chemical |
| Guangzhou Jointas |
Ningbo Bohui and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Bohui and Guangzhou Jointas
The main advantage of trading using opposite Ningbo Bohui and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Bohui position performs unexpectedly, Guangzhou Jointas 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 Guangzhou Jointas will offset losses from the drop in Guangzhou Jointas' long position.| Ningbo Bohui vs. Zhejiang Kingland Pipeline | Ningbo Bohui vs. Xiangyang Automobile Bearing | Ningbo Bohui vs. COL Digital Publishing | Ningbo Bohui vs. Suzhou Novoprotein Scientific |
| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining | Guangzhou Jointas vs. Rongsheng Petrochemical Co |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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