Correlation Between Ningbo Boway and Hangzhou EZVIZ
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By analyzing existing cross correlation between Ningbo Boway Alloy and Hangzhou EZVIZ Network, you can compare the effects of market volatilities on Ningbo Boway and Hangzhou EZVIZ 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 Hangzhou EZVIZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Boway and Hangzhou EZVIZ.
Diversification Opportunities for Ningbo Boway and Hangzhou EZVIZ
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Hangzhou is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Boway Alloy and Hangzhou EZVIZ Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou EZVIZ Network 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 Hangzhou EZVIZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou EZVIZ Network has no effect on the direction of Ningbo Boway i.e., Ningbo Boway and Hangzhou EZVIZ go up and down completely randomly.
Pair Corralation between Ningbo Boway and Hangzhou EZVIZ
Assuming the 90 days trading horizon Ningbo Boway Alloy is expected to generate 3.06 times more return on investment than Hangzhou EZVIZ. However, Ningbo Boway is 3.06 times more volatile than Hangzhou EZVIZ Network. It trades about 0.1 of its potential returns per unit of risk. Hangzhou EZVIZ Network is currently generating about -0.38 per unit of risk. If you would invest 1,769 in Ningbo Boway Alloy on October 15, 2024 and sell it today you would earn a total of 119.00 from holding Ningbo Boway Alloy or generate 6.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Boway Alloy vs. Hangzhou EZVIZ Network
Performance |
| Timeline |
| Ningbo Boway Alloy |
| Hangzhou EZVIZ Network |
Ningbo Boway and Hangzhou EZVIZ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Boway and Hangzhou EZVIZ
The main advantage of trading using opposite Ningbo Boway and Hangzhou EZVIZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Boway position performs unexpectedly, Hangzhou EZVIZ 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 Hangzhou EZVIZ will offset losses from the drop in Hangzhou EZVIZ's long position.| Ningbo Boway vs. Huasi Agricultural Development | Ningbo Boway vs. Allied Machinery Co | Ningbo Boway vs. Gifore Agricultural Machinery | Ningbo Boway vs. Zoje Resources Investment |
| Hangzhou EZVIZ vs. Beijing Shunxin Agriculture | Hangzhou EZVIZ vs. Youyou Foods Co | Hangzhou EZVIZ vs. Anhui Jianghuai Automobile | Hangzhou EZVIZ vs. Muyuan Foodstuff 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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