Correlation Between Ningbo Homelink and Shandong Homey
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By analyzing existing cross correlation between Ningbo Homelink Eco iTech and Shandong Homey Aquatic, you can compare the effects of market volatilities on Ningbo Homelink and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Homelink and Shandong Homey.
Diversification Opportunities for Ningbo Homelink and Shandong Homey
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Shandong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Homelink Eco iTech and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Ningbo Homelink i.e., Ningbo Homelink and Shandong Homey go up and down completely randomly.
Pair Corralation between Ningbo Homelink and Shandong Homey
Assuming the 90 days trading horizon Ningbo Homelink Eco iTech is expected to under-perform the Shandong Homey. In addition to that, Ningbo Homelink is 1.06 times more volatile than Shandong Homey Aquatic. It trades about -0.01 of its total potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.0 per unit of volatility. If you would invest 259.00 in Shandong Homey Aquatic on October 27, 2024 and sell it today you would lose (39.00) from holding Shandong Homey Aquatic or give up 15.06% 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. Shandong Homey Aquatic
Performance |
| Timeline |
| Ningbo Homelink Eco |
| Shandong Homey Aquatic |
Ningbo Homelink and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Homelink and Shandong Homey
The main advantage of trading using opposite Ningbo Homelink and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Homelink position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Ningbo Homelink vs. Nanxing Furniture Machinery | Ningbo Homelink vs. Great Sun Foods Co | Ningbo Homelink vs. Anhui Huilong Agricultural | Ningbo Homelink vs. Linzhou Heavy Machinery |
| Shandong Homey vs. Zotye Automobile Co | Shandong Homey vs. Ningbo Ligong Online | Shandong Homey vs. Healthcare Co | Shandong Homey vs. China Mobile Limited |
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 CEOs Directory module to screen CEOs from public companies around the world.
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