Correlation Between NBTM New and Strait Innovation
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By analyzing existing cross correlation between NBTM New Materials and Strait Innovation Internet, you can compare the effects of market volatilities on NBTM New and Strait Innovation 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 Strait Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBTM New and Strait Innovation.
Diversification Opportunities for NBTM New and Strait Innovation
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between NBTM and Strait is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding NBTM New Materials and Strait Innovation Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strait Innovation 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 Strait Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strait Innovation has no effect on the direction of NBTM New i.e., NBTM New and Strait Innovation go up and down completely randomly.
Pair Corralation between NBTM New and Strait Innovation
Assuming the 90 days trading horizon NBTM New Materials is expected to generate 0.75 times more return on investment than Strait Innovation. However, NBTM New Materials is 1.33 times less risky than Strait Innovation. It trades about 0.06 of its potential returns per unit of risk. Strait Innovation Internet is currently generating about -0.04 per unit of risk. If you would invest 1,550 in NBTM New Materials on October 18, 2024 and sell it today you would earn a total of 90.00 from holding NBTM New Materials or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NBTM New Materials vs. Strait Innovation Internet
Performance |
| Timeline |
| NBTM New Materials |
| Strait Innovation |
NBTM New and Strait Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NBTM New and Strait Innovation
The main advantage of trading using opposite NBTM New and Strait Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBTM New position performs unexpectedly, Strait Innovation 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 Strait Innovation will offset losses from the drop in Strait Innovation's long position.| NBTM New vs. Peoples Insurance of | NBTM New vs. Shenwu Energy Saving | NBTM New vs. Financial Street Holdings | NBTM New vs. Qilu Bank Co |
| Strait Innovation vs. Cansino Biologics | Strait Innovation vs. Nanxing Furniture Machinery | Strait Innovation vs. Shandong Homey Aquatic | Strait Innovation 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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