Correlation Between NBTM New and LianChuang Electronic
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By analyzing existing cross correlation between NBTM New Materials and LianChuang Electronic Technology, you can compare the effects of market volatilities on NBTM New and LianChuang Electronic 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 NBTM New with a short position of LianChuang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBTM New and LianChuang Electronic.
Diversification Opportunities for NBTM New and LianChuang Electronic
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NBTM and LianChuang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding NBTM New Materials and LianChuang Electronic Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LianChuang Electronic and NBTM New 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 NBTM New Materials are associated (or correlated) with LianChuang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LianChuang Electronic has no effect on the direction of NBTM New i.e., NBTM New and LianChuang Electronic go up and down completely randomly.
Pair Corralation between NBTM New and LianChuang Electronic
Assuming the 90 days trading horizon NBTM New Materials is expected to generate 0.81 times more return on investment than LianChuang Electronic. However, NBTM New Materials is 1.24 times less risky than LianChuang Electronic. It trades about 0.07 of its potential returns per unit of risk. LianChuang Electronic Technology is currently generating about 0.01 per unit of risk. If you would invest 1,557 in NBTM New Materials on September 27, 2024 and sell it today you would earn a total of 56.00 from holding NBTM New Materials or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NBTM New Materials vs. LianChuang Electronic Technolo
Performance |
| Timeline |
| NBTM New Materials |
| LianChuang Electronic |
NBTM New and LianChuang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NBTM New and LianChuang Electronic
The main advantage of trading using opposite NBTM New and LianChuang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBTM New position performs unexpectedly, LianChuang Electronic 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 LianChuang Electronic will offset losses from the drop in LianChuang Electronic's long position.| NBTM New vs. China Life Insurance | NBTM New vs. Cinda Securities Co | NBTM New vs. Piotech Inc A | NBTM New vs. Dongxing Sec Co |
| LianChuang Electronic vs. GRG Banking Equipment | LianChuang Electronic vs. NBTM New Materials | LianChuang Electronic vs. Jinhui Liquor Co | LianChuang Electronic vs. Orinko Advanced Plastics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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