Correlation Between Ningbo Thermal and Wintao Communications
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By analyzing existing cross correlation between Ningbo Thermal Power and Wintao Communications Co, you can compare the effects of market volatilities on Ningbo Thermal and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Thermal and Wintao Communications.
Diversification Opportunities for Ningbo Thermal and Wintao Communications
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Wintao is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Thermal Power and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Ningbo Thermal i.e., Ningbo Thermal and Wintao Communications go up and down completely randomly.
Pair Corralation between Ningbo Thermal and Wintao Communications
Assuming the 90 days trading horizon Ningbo Thermal is expected to generate 1.54 times less return on investment than Wintao Communications. But when comparing it to its historical volatility, Ningbo Thermal Power is 1.97 times less risky than Wintao Communications. It trades about 0.13 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,410 in Wintao Communications Co on September 13, 2024 and sell it today you would earn a total of 127.00 from holding Wintao Communications Co or generate 5.27% 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. Wintao Communications Co
Performance |
| Timeline |
| Ningbo Thermal Power |
| Wintao Communications |
Ningbo Thermal and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Thermal and Wintao Communications
The main advantage of trading using opposite Ningbo Thermal and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Thermal position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' 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 |
| Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. China Construction Bank | Wintao Communications vs. Agricultural Bank of | Wintao Communications vs. Bank of China |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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