Correlation Between Ningbo Thermal and Uroica Mining
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By analyzing existing cross correlation between Ningbo Thermal Power and Uroica Mining Safety, you can compare the effects of market volatilities on Ningbo Thermal and Uroica Mining 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 Uroica Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Thermal and Uroica Mining.
Diversification Opportunities for Ningbo Thermal and Uroica Mining
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Uroica is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Thermal Power and Uroica Mining Safety in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uroica Mining Safety 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 Uroica Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uroica Mining Safety has no effect on the direction of Ningbo Thermal i.e., Ningbo Thermal and Uroica Mining go up and down completely randomly.
Pair Corralation between Ningbo Thermal and Uroica Mining
Assuming the 90 days trading horizon Ningbo Thermal is expected to generate 1.81 times less return on investment than Uroica Mining. But when comparing it to its historical volatility, Ningbo Thermal Power is 2.16 times less risky than Uroica Mining. It trades about 0.21 of its potential returns per unit of risk. Uroica Mining Safety is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 470.00 in Uroica Mining Safety on September 12, 2024 and sell it today you would earn a total of 226.00 from holding Uroica Mining Safety or generate 48.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Ningbo Thermal Power vs. Uroica Mining Safety
Performance |
| Timeline |
| Ningbo Thermal Power |
| Uroica Mining Safety |
Ningbo Thermal and Uroica Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Thermal and Uroica Mining
The main advantage of trading using opposite Ningbo Thermal and Uroica Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Thermal position performs unexpectedly, Uroica Mining 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 Uroica Mining will offset losses from the drop in Uroica Mining'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 |
| Uroica Mining vs. Ming Yang Smart | Uroica Mining vs. 159681 | Uroica Mining vs. 159005 | Uroica Mining vs. Loctek Ergonomic Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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