Correlation Between Ningbo Boway and Sichuan Hebang
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By analyzing existing cross correlation between Ningbo Boway Alloy and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Ningbo Boway and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Boway and Sichuan Hebang.
Diversification Opportunities for Ningbo Boway and Sichuan Hebang
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Sichuan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Boway Alloy and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Ningbo Boway i.e., Ningbo Boway and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Ningbo Boway and Sichuan Hebang
Assuming the 90 days trading horizon Ningbo Boway Alloy is expected to generate 3.13 times more return on investment than Sichuan Hebang. However, Ningbo Boway is 3.13 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.03 per unit of risk. If you would invest 1,661 in Ningbo Boway Alloy on September 28, 2024 and sell it today you would earn a total of 340.00 from holding Ningbo Boway Alloy or generate 20.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.95% |
| Values | Daily Returns |
Ningbo Boway Alloy vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Ningbo Boway Alloy |
| Sichuan Hebang Biote |
Ningbo Boway and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Boway and Sichuan Hebang
The main advantage of trading using opposite Ningbo Boway and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Boway position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Ningbo Boway vs. Shanghai Broadband Technology | Ningbo Boway vs. Anhui Huaheng Biotechnology | Ningbo Boway vs. Sichuan Hebang Biotechnology | Ningbo Boway vs. RoadMain T Co |
| Sichuan Hebang vs. Zijin Mining Group | Sichuan Hebang vs. Wanhua Chemical Group | Sichuan Hebang vs. Baoshan Iron Steel | Sichuan Hebang vs. Shandong Gold Mining |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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