Correlation Between Ningbo Homelink and Xiandai Investment
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By analyzing existing cross correlation between Ningbo Homelink Eco iTech and Xiandai Investment Co, you can compare the effects of market volatilities on Ningbo Homelink and Xiandai Investment 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 Homelink with a short position of Xiandai Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Homelink and Xiandai Investment.
Diversification Opportunities for Ningbo Homelink and Xiandai Investment
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Xiandai is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Homelink Eco iTech and Xiandai Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiandai Investment and Ningbo Homelink 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 Homelink Eco iTech are associated (or correlated) with Xiandai Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiandai Investment has no effect on the direction of Ningbo Homelink i.e., Ningbo Homelink and Xiandai Investment go up and down completely randomly.
Pair Corralation between Ningbo Homelink and Xiandai Investment
Assuming the 90 days trading horizon Ningbo Homelink Eco iTech is expected to generate 2.3 times more return on investment than Xiandai Investment. However, Ningbo Homelink is 2.3 times more volatile than Xiandai Investment Co. It trades about -0.11 of its potential returns per unit of risk. Xiandai Investment Co is currently generating about -0.29 per unit of risk. If you would invest 1,697 in Ningbo Homelink Eco iTech on October 29, 2024 and sell it today you would lose (113.00) from holding Ningbo Homelink Eco iTech or give up 6.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Homelink Eco iTech vs. Xiandai Investment Co
Performance |
| Timeline |
| Ningbo Homelink Eco |
| Xiandai Investment |
Ningbo Homelink and Xiandai Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Homelink and Xiandai Investment
The main advantage of trading using opposite Ningbo Homelink and Xiandai Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Homelink position performs unexpectedly, Xiandai Investment 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 Xiandai Investment will offset losses from the drop in Xiandai Investment's long position.| Ningbo Homelink vs. Shenzhen Clou Electronics | Ningbo Homelink vs. YiDong Electronics Technology | Ningbo Homelink vs. Zhonghang Electronic Measuring | Ningbo Homelink vs. Fuzhou Rockchip Electronics |
| Xiandai Investment vs. Tianjin Hi Tech Development | Xiandai Investment vs. Tibet Huayu Mining | Xiandai Investment vs. Minmetals Capital Co | Xiandai Investment vs. Bank of Communications |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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