Correlation Between Ningbo Homelink and Ningbo Tech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Homelink Eco iTech and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Ningbo Homelink and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Homelink and Ningbo Tech.
Diversification Opportunities for Ningbo Homelink and Ningbo Tech
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Ningbo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Homelink Eco iTech and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Ningbo Homelink i.e., Ningbo Homelink and Ningbo Tech go up and down completely randomly.
Pair Corralation between Ningbo Homelink and Ningbo Tech
Assuming the 90 days trading horizon Ningbo Homelink is expected to generate 1.17 times less return on investment than Ningbo Tech. In addition to that, Ningbo Homelink is 1.12 times more volatile than Ningbo Tech Bank Co. It trades about 0.05 of its total potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about 0.06 per unit of volatility. If you would invest 241.00 in Ningbo Tech Bank Co on October 18, 2024 and sell it today you would earn a total of 38.00 from holding Ningbo Tech Bank Co or generate 15.77% return on investment 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. Ningbo Tech Bank Co
Performance |
| Timeline |
| Ningbo Homelink Eco |
| Ningbo Tech Bank |
Ningbo Homelink and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Homelink and Ningbo Tech
The main advantage of trading using opposite Ningbo Homelink and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Homelink position performs unexpectedly, Ningbo Tech 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 Tech will offset losses from the drop in Ningbo Tech's long position.| Ningbo Homelink vs. North Copper Shanxi | Ningbo Homelink vs. Rising Nonferrous Metals | Ningbo Homelink vs. Maccura Biotechnology Co | Ningbo Homelink vs. Sino Platinum Metals Co |
| Ningbo Tech vs. Zhongzhu Medical Holdings | Ningbo Tech vs. Ningbo Homelink Eco iTech | Ningbo Tech vs. Double Medical Technology | Ningbo Tech vs. Hengkang Medical Group |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |