Correlation Between Ningbo Homelink and Beijing Baolande
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By analyzing existing cross correlation between Ningbo Homelink Eco iTech and Beijing Baolande Software, you can compare the effects of market volatilities on Ningbo Homelink and Beijing Baolande 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 Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Homelink and Beijing Baolande.
Diversification Opportunities for Ningbo Homelink and Beijing Baolande
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ningbo and Beijing is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Homelink Eco iTech and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande Software 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 Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of Ningbo Homelink i.e., Ningbo Homelink and Beijing Baolande go up and down completely randomly.
Pair Corralation between Ningbo Homelink and Beijing Baolande
Assuming the 90 days trading horizon Ningbo Homelink Eco iTech is expected to generate 0.7 times more return on investment than Beijing Baolande. However, Ningbo Homelink Eco iTech is 1.44 times less risky than Beijing Baolande. It trades about -0.03 of its potential returns per unit of risk. Beijing Baolande Software is currently generating about -0.29 per unit of risk. If you would invest 1,718 in Ningbo Homelink Eco iTech on October 11, 2024 and sell it today you would lose (88.00) from holding Ningbo Homelink Eco iTech or give up 5.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Homelink Eco iTech vs. Beijing Baolande Software
Performance |
| Timeline |
| Ningbo Homelink Eco |
| Beijing Baolande Software |
Ningbo Homelink and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Homelink and Beijing Baolande
The main advantage of trading using opposite Ningbo Homelink and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Homelink position performs unexpectedly, Beijing Baolande 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 Baolande will offset losses from the drop in Beijing Baolande's long position.| Ningbo Homelink vs. Everjoy Health Group | Ningbo Homelink vs. Hangzhou Minsheng Healthcare | Ningbo Homelink vs. Sunny Loan Top | Ningbo Homelink vs. Success Electronics |
| Beijing Baolande vs. Fiberhome Telecommunication Technologies | Beijing Baolande vs. Ningbo Homelink Eco iTech | Beijing Baolande vs. Sanbo Hospital Management | Beijing Baolande vs. Luolai Home Textile |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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