Correlation Between Ningbo Boway and Wuhan Yangtze
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Boway Alloy and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Ningbo Boway and Wuhan Yangtze 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 Boway with a short position of Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Boway and Wuhan Yangtze.
Diversification Opportunities for Ningbo Boway and Wuhan Yangtze
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ningbo and Wuhan is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Boway Alloy and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun and Ningbo Boway 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 Boway Alloy are associated (or correlated) with Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Ningbo Boway i.e., Ningbo Boway and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Ningbo Boway and Wuhan Yangtze
Assuming the 90 days trading horizon Ningbo Boway is expected to generate 4.21 times less return on investment than Wuhan Yangtze. But when comparing it to its historical volatility, Ningbo Boway Alloy is 1.26 times less risky than Wuhan Yangtze. It trades about 0.05 of its potential returns per unit of risk. Wuhan Yangtze Communication is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,140 in Wuhan Yangtze Communication on November 8, 2024 and sell it today you would earn a total of 202.00 from holding Wuhan Yangtze Communication or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Boway Alloy vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Ningbo Boway Alloy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Wuhan Yangtze Commun |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Ningbo Boway and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Boway and Wuhan Yangtze
The main advantage of trading using opposite Ningbo Boway and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Boway position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.The idea behind Ningbo Boway Alloy and Wuhan Yangtze Communication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |