Correlation Between Ningxia Building and OBiO Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningxia Building Materials and OBiO Technology Corp, you can compare the effects of market volatilities on Ningxia Building and OBiO Technology 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 Ningxia Building with a short position of OBiO Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Building and OBiO Technology.
Diversification Opportunities for Ningxia Building and OBiO Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningxia and OBiO is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Building Materials and OBiO Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OBiO Technology Corp and Ningxia Building 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 Ningxia Building Materials are associated (or correlated) with OBiO Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OBiO Technology Corp has no effect on the direction of Ningxia Building i.e., Ningxia Building and OBiO Technology go up and down completely randomly.
Pair Corralation between Ningxia Building and OBiO Technology
Assuming the 90 days trading horizon Ningxia Building is expected to generate 1.57 times less return on investment than OBiO Technology. But when comparing it to its historical volatility, Ningxia Building Materials is 1.13 times less risky than OBiO Technology. It trades about 0.08 of its potential returns per unit of risk. OBiO Technology Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 535.00 in OBiO Technology Corp on August 30, 2024 and sell it today you would earn a total of 38.00 from holding OBiO Technology Corp or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Building Materials vs. OBiO Technology Corp
Performance |
| Timeline |
| Ningxia Building Mat |
| OBiO Technology Corp |
Ningxia Building and OBiO Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Building and OBiO Technology
The main advantage of trading using opposite Ningxia Building and OBiO Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Building position performs unexpectedly, OBiO Technology 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 OBiO Technology will offset losses from the drop in OBiO Technology's long position.| Ningxia Building vs. Shandong Gold Mining | Ningxia Building vs. Rongsheng Petrochemical Co | Ningxia Building vs. Inner Mongolia BaoTou | Ningxia Building vs. Jiangxi Ganfeng Lithium |
| OBiO Technology vs. Guangzhou Tinci Materials | OBiO Technology vs. Ningxia Building Materials | OBiO Technology vs. Jinling Hotel Corp | OBiO Technology vs. Fuda Alloy Materials |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |