Correlation Between Ningbo Homelink and China Securities
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By analyzing existing cross correlation between Ningbo Homelink Eco iTech and China Securities 800, you can compare the effects of market volatilities on Ningbo Homelink and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Homelink and China Securities.
Diversification Opportunities for Ningbo Homelink and China Securities
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and China is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Homelink Eco iTech and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Ningbo Homelink i.e., Ningbo Homelink and China Securities go up and down completely randomly.
Pair Corralation between Ningbo Homelink and China Securities
Assuming the 90 days trading horizon Ningbo Homelink Eco iTech is expected to generate 2.99 times more return on investment than China Securities. However, Ningbo Homelink is 2.99 times more volatile than China Securities 800. It trades about -0.09 of its potential returns per unit of risk. China Securities 800 is currently generating about -0.29 per unit of risk. If you would invest 1,750 in Ningbo Homelink Eco iTech on October 12, 2024 and sell it today you would lose (120.00) from holding Ningbo Homelink Eco iTech or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Homelink Eco iTech vs. China Securities 800
Performance |
| Timeline |
Ningbo Homelink and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Ningbo Homelink Eco iTech
Pair trading matchups for Ningbo Homelink
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Ningbo Homelink and China Securities
The main advantage of trading using opposite Ningbo Homelink and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Homelink position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Ningbo Homelink vs. Fibocom Wireless | Ningbo Homelink vs. Iat Automobile Technology | Ningbo Homelink vs. Nanjing Putian Telecommunications | Ningbo Homelink vs. Xiangyang Automobile Bearing |
| China Securities vs. Puya Semiconductor Shanghai | China Securities vs. Shanghai Shuixing Home | China Securities vs. Ningbo Homelink Eco iTech | China Securities vs. Shanghai V Test Semiconductor |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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