Correlation Between Sunny Loan and Ningbo Boway
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By analyzing existing cross correlation between Sunny Loan Top and Ningbo Boway Alloy, you can compare the effects of market volatilities on Sunny Loan and Ningbo Boway 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 Sunny Loan with a short position of Ningbo Boway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Ningbo Boway.
Diversification Opportunities for Sunny Loan and Ningbo Boway
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and Ningbo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Ningbo Boway Alloy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Boway Alloy and Sunny Loan 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 Sunny Loan Top are associated (or correlated) with Ningbo Boway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Boway Alloy has no effect on the direction of Sunny Loan i.e., Sunny Loan and Ningbo Boway go up and down completely randomly.
Pair Corralation between Sunny Loan and Ningbo Boway
Assuming the 90 days trading horizon Sunny Loan Top is expected to generate 1.66 times more return on investment than Ningbo Boway. However, Sunny Loan is 1.66 times more volatile than Ningbo Boway Alloy. It trades about 0.07 of its potential returns per unit of risk. Ningbo Boway Alloy is currently generating about 0.11 per unit of risk. If you would invest 1,005 in Sunny Loan Top on September 27, 2024 and sell it today you would earn a total of 35.00 from holding Sunny Loan Top or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Ningbo Boway Alloy
Performance |
| Timeline |
| Sunny Loan Top |
| Ningbo Boway Alloy |
Sunny Loan and Ningbo Boway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Ningbo Boway
The main advantage of trading using opposite Sunny Loan and Ningbo Boway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, Ningbo Boway 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 Ningbo Boway will offset losses from the drop in Ningbo Boway's long position.| Sunny Loan vs. Cowealth Medical China | Sunny Loan vs. Air China Ltd | Sunny Loan vs. State Grid InformationCommunication | Sunny Loan vs. SUNSEA Telecommunications Co |
| Ningbo Boway vs. Zijin Mining Group | Ningbo Boway vs. Wanhua Chemical Group | Ningbo Boway vs. Baoshan Iron Steel | Ningbo Boway vs. Shandong Gold Mining |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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