Correlation Between Chongqing Sokon and Ningbo Tech-Bank
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By analyzing existing cross correlation between Chongqing Sokon Ind and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Chongqing Sokon and Ningbo Tech-Bank 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 Chongqing Sokon with a short position of Ningbo Tech-Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sokon and Ningbo Tech-Bank.
Diversification Opportunities for Chongqing Sokon and Ningbo Tech-Bank
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chongqing and Ningbo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sokon Ind and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank and Chongqing Sokon 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 Chongqing Sokon Ind are associated (or correlated) with Ningbo Tech-Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Chongqing Sokon i.e., Chongqing Sokon and Ningbo Tech-Bank go up and down completely randomly.
Pair Corralation between Chongqing Sokon and Ningbo Tech-Bank
Assuming the 90 days trading horizon Chongqing Sokon is expected to generate 2.0 times less return on investment than Ningbo Tech-Bank. But when comparing it to its historical volatility, Chongqing Sokon Ind is 1.04 times less risky than Ningbo Tech-Bank. It trades about 0.08 of its potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 278.00 in Ningbo Tech Bank Co on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Ningbo Tech Bank Co or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sokon Ind vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Chongqing Sokon Ind |
| Ningbo Tech Bank |
Chongqing Sokon and Ningbo Tech-Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sokon and Ningbo Tech-Bank
The main advantage of trading using opposite Chongqing Sokon and Ningbo Tech-Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sokon position performs unexpectedly, Ningbo Tech-Bank 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 Tech-Bank will offset losses from the drop in Ningbo Tech-Bank's long position.| Chongqing Sokon vs. Chison Medical Technologies | Chongqing Sokon vs. Hengkang Medical Group | Chongqing Sokon vs. Sichuan Fulin Transportation | Chongqing Sokon vs. Longjian Road Bridge |
| Ningbo Tech-Bank vs. Qingdao Foods Co | Ningbo Tech-Bank vs. Shanghai Rightongene Biotechnology | Ningbo Tech-Bank vs. Youyou Foods Co | Ningbo Tech-Bank vs. JuneYao Dairy Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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