Correlation Between NBTM New and Shanghai CEO
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By analyzing existing cross correlation between NBTM New Materials and Shanghai CEO Environmental, you can compare the effects of market volatilities on NBTM New and Shanghai CEO 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 Shanghai CEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBTM New and Shanghai CEO.
Diversification Opportunities for NBTM New and Shanghai CEO
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NBTM and Shanghai is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding NBTM New Materials and Shanghai CEO Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai CEO Environ 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 Shanghai CEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai CEO Environ has no effect on the direction of NBTM New i.e., NBTM New and Shanghai CEO go up and down completely randomly.
Pair Corralation between NBTM New and Shanghai CEO
Assuming the 90 days trading horizon NBTM New Materials is expected to generate 0.92 times more return on investment than Shanghai CEO. However, NBTM New Materials is 1.08 times less risky than Shanghai CEO. It trades about 0.05 of its potential returns per unit of risk. Shanghai CEO Environmental is currently generating about -0.18 per unit of risk. If you would invest 1,623 in NBTM New Materials on October 18, 2024 and sell it today you would earn a total of 34.00 from holding NBTM New Materials or generate 2.09% 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. Shanghai CEO Environmental
Performance |
| Timeline |
| NBTM New Materials |
| Shanghai CEO Environ |
NBTM New and Shanghai CEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NBTM New and Shanghai CEO
The main advantage of trading using opposite NBTM New and Shanghai CEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBTM New position performs unexpectedly, Shanghai CEO 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 Shanghai CEO will offset losses from the drop in Shanghai CEO's long position.| NBTM New vs. Will Semiconductor Co | NBTM New vs. Nexchip Semiconductor Corp | NBTM New vs. Union Semiconductor Co | NBTM New vs. Shanghai V Test Semiconductor |
| Shanghai CEO vs. Ingenic Semiconductor | Shanghai CEO vs. AVIC Fund Management | Shanghai CEO vs. Puya Semiconductor Shanghai | Shanghai CEO vs. Will Semiconductor Co |
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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