Correlation Between Cinda Securities and NBTM New
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By analyzing existing cross correlation between Cinda Securities Co and NBTM New Materials, you can compare the effects of market volatilities on Cinda Securities and NBTM New 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 Cinda Securities with a short position of NBTM New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and NBTM New.
Diversification Opportunities for Cinda Securities and NBTM New
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and NBTM is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and NBTM New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBTM New Materials and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with NBTM New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBTM New Materials has no effect on the direction of Cinda Securities i.e., Cinda Securities and NBTM New go up and down completely randomly.
Pair Corralation between Cinda Securities and NBTM New
Assuming the 90 days trading horizon Cinda Securities Co is expected to generate 0.69 times more return on investment than NBTM New. However, Cinda Securities Co is 1.46 times less risky than NBTM New. It trades about 0.18 of its potential returns per unit of risk. NBTM New Materials is currently generating about 0.07 per unit of risk. If you would invest 1,502 in Cinda Securities Co on September 28, 2024 and sell it today you would earn a total of 109.00 from holding Cinda Securities Co or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. NBTM New Materials
Performance |
| Timeline |
| Cinda Securities |
| NBTM New Materials |
Cinda Securities and NBTM New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and NBTM New
The main advantage of trading using opposite Cinda Securities and NBTM New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, NBTM New 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 NBTM New will offset losses from the drop in NBTM New's long position.| Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Contemporary Amperex Technology | Cinda Securities vs. G bits Network Technology | Cinda Securities vs. BYD Co Ltd |
| NBTM New vs. Tianshui Huatian Technology | NBTM New vs. Zhejiang Construction Investment | NBTM New vs. Chengdu Xingrong Investment | NBTM New vs. Northking Information 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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