Correlation Between Ningbo Thermal and Shenyang Huitian
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By analyzing existing cross correlation between Ningbo Thermal Power and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Ningbo Thermal and Shenyang Huitian 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 Ningbo Thermal with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Thermal and Shenyang Huitian.
Diversification Opportunities for Ningbo Thermal and Shenyang Huitian
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Shenyang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Thermal Power and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Ningbo Thermal 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 Ningbo Thermal Power are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Ningbo Thermal i.e., Ningbo Thermal and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Ningbo Thermal and Shenyang Huitian
Assuming the 90 days trading horizon Ningbo Thermal Power is expected to generate 0.59 times more return on investment than Shenyang Huitian. However, Ningbo Thermal Power is 1.69 times less risky than Shenyang Huitian. It trades about 0.13 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.02 per unit of risk. If you would invest 406.00 in Ningbo Thermal Power on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Ningbo Thermal Power or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Thermal Power vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Ningbo Thermal Power |
| Shenyang Huitian Thermal |
Ningbo Thermal and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Thermal and Shenyang Huitian
The main advantage of trading using opposite Ningbo Thermal and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Thermal position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Ningbo Thermal vs. Bank of China | Ningbo Thermal vs. Kweichow Moutai Co | Ningbo Thermal vs. PetroChina Co Ltd | Ningbo Thermal vs. Bank of Communications |
| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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