Correlation Between Ningbo Bohui and Hangzhou Minsheng
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By analyzing existing cross correlation between Ningbo Bohui Chemical and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Ningbo Bohui and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Bohui and Hangzhou Minsheng.
Diversification Opportunities for Ningbo Bohui and Hangzhou Minsheng
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Hangzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Bohui Chemical and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Ningbo Bohui i.e., Ningbo Bohui and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Ningbo Bohui and Hangzhou Minsheng
Assuming the 90 days trading horizon Ningbo Bohui Chemical is expected to generate 1.46 times more return on investment than Hangzhou Minsheng. However, Ningbo Bohui is 1.46 times more volatile than Hangzhou Minsheng Healthcare. It trades about 0.11 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.07 per unit of risk. If you would invest 771.00 in Ningbo Bohui Chemical on September 12, 2024 and sell it today you would earn a total of 50.00 from holding Ningbo Bohui Chemical or generate 6.49% 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. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Ningbo Bohui Chemical |
| Hangzhou Minsheng |
Ningbo Bohui and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Bohui and Hangzhou Minsheng
The main advantage of trading using opposite Ningbo Bohui and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Bohui position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Ningbo Bohui vs. Gansu Jiu Steel | Ningbo Bohui vs. Shandong Mining Machinery | Ningbo Bohui vs. Aba Chemicals Corp | Ningbo Bohui vs. BlueFocus Communication Group |
| Hangzhou Minsheng vs. Liaoning Dingjide Petrochemical | Hangzhou Minsheng vs. Yangmei Chemical Co | Hangzhou Minsheng vs. Caihong Display Devices | Hangzhou Minsheng vs. Ningbo Bohui Chemical |
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 Stocks Directory module to find actively traded stocks across global markets.
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