Correlation Between Dongxing Sec and NBTM New
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By analyzing existing cross correlation between Dongxing Sec Co and NBTM New Materials, you can compare the effects of market volatilities on Dongxing Sec 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 Dongxing Sec with a short position of NBTM New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongxing Sec and NBTM New.
Diversification Opportunities for Dongxing Sec and NBTM New
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongxing and NBTM is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec 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 Dongxing Sec i.e., Dongxing Sec and NBTM New go up and down completely randomly.
Pair Corralation between Dongxing Sec and NBTM New
Assuming the 90 days trading horizon Dongxing Sec Co is expected to generate 0.61 times more return on investment than NBTM New. However, Dongxing Sec Co is 1.63 times less risky than NBTM New. It trades about 0.15 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 1,124 in Dongxing Sec Co on September 28, 2024 and sell it today you would earn a total of 59.00 from holding Dongxing Sec Co or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongxing Sec Co vs. NBTM New Materials
Performance |
| Timeline |
| Dongxing Sec |
| NBTM New Materials |
Dongxing Sec and NBTM New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongxing Sec and NBTM New
The main advantage of trading using opposite Dongxing Sec and NBTM New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongxing Sec 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.| Dongxing Sec vs. Runjian Communication Co | Dongxing Sec vs. Fiberhome Telecommunication Technologies | Dongxing Sec vs. Nanjing Putian Telecommunications | Dongxing Sec vs. Penyao Environmental Protection |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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