Correlation Between Ningbo Homelink and Beijing Kaiwen
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By analyzing existing cross correlation between Ningbo Homelink Eco iTech and Beijing Kaiwen Education, you can compare the effects of market volatilities on Ningbo Homelink and Beijing Kaiwen 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 Beijing Kaiwen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Homelink and Beijing Kaiwen.
Diversification Opportunities for Ningbo Homelink and Beijing Kaiwen
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Beijing is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Homelink Eco iTech and Beijing Kaiwen Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Kaiwen Education 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 Beijing Kaiwen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Kaiwen Education has no effect on the direction of Ningbo Homelink i.e., Ningbo Homelink and Beijing Kaiwen go up and down completely randomly.
Pair Corralation between Ningbo Homelink and Beijing Kaiwen
Assuming the 90 days trading horizon Ningbo Homelink Eco iTech is expected to generate 0.8 times more return on investment than Beijing Kaiwen. However, Ningbo Homelink Eco iTech is 1.25 times less risky than Beijing Kaiwen. It trades about -0.16 of its potential returns per unit of risk. Beijing Kaiwen Education is currently generating about -0.33 per unit of risk. If you would invest 1,756 in Ningbo Homelink Eco iTech on October 14, 2024 and sell it today you would lose (203.00) from holding Ningbo Homelink Eco iTech or give up 11.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Homelink Eco iTech vs. Beijing Kaiwen Education
Performance |
| Timeline |
| Ningbo Homelink Eco |
| Beijing Kaiwen Education |
Ningbo Homelink and Beijing Kaiwen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Homelink and Beijing Kaiwen
The main advantage of trading using opposite Ningbo Homelink and Beijing Kaiwen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Homelink position performs unexpectedly, Beijing Kaiwen 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 Beijing Kaiwen will offset losses from the drop in Beijing Kaiwen's long position.| Ningbo Homelink vs. Anhui Jianghuai Automobile | Ningbo Homelink vs. TongFu Microelectronics Co | Ningbo Homelink vs. Shenzhen Clou Electronics | Ningbo Homelink vs. Fiberhome Telecommunication Technologies |
| Beijing Kaiwen vs. Xiamen Goldenhome Co | Beijing Kaiwen vs. Shanghai Shuixing Home | Beijing Kaiwen vs. AUPU Home Style | Beijing Kaiwen vs. Ningbo Homelink Eco iTech |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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