Correlation Between Bank of Communications and Ningxia Xiaoming
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By analyzing existing cross correlation between Bank of Communications and Ningxia Xiaoming Agriculture, you can compare the effects of market volatilities on Bank of Communications and Ningxia Xiaoming 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 Bank of Communications with a short position of Ningxia Xiaoming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Ningxia Xiaoming.
Diversification Opportunities for Bank of Communications and Ningxia Xiaoming
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Ningxia is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications and Ningxia Xiaoming Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Xiaoming Agr and Bank of Communications 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 Bank of Communications are associated (or correlated) with Ningxia Xiaoming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Xiaoming Agr has no effect on the direction of Bank of Communications i.e., Bank of Communications and Ningxia Xiaoming go up and down completely randomly.
Pair Corralation between Bank of Communications and Ningxia Xiaoming
Assuming the 90 days trading horizon Bank of Communications is expected to under-perform the Ningxia Xiaoming. But the stock apears to be less risky and, when comparing its historical volatility, Bank of Communications is 2.22 times less risky than Ningxia Xiaoming. The stock trades about -0.3 of its potential returns per unit of risk. The Ningxia Xiaoming Agriculture is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,214 in Ningxia Xiaoming Agriculture on October 25, 2024 and sell it today you would lose (68.00) from holding Ningxia Xiaoming Agriculture or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Ningxia Xiaoming Agriculture
Performance |
| Timeline |
| Bank of Communications |
| Ningxia Xiaoming Agr |
Bank of Communications and Ningxia Xiaoming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Ningxia Xiaoming
The main advantage of trading using opposite Bank of Communications and Ningxia Xiaoming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications position performs unexpectedly, Ningxia Xiaoming 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 Ningxia Xiaoming will offset losses from the drop in Ningxia Xiaoming's long position.| Bank of Communications vs. Bank of China | Bank of Communications vs. Kweichow Moutai Co | Bank of Communications vs. PetroChina Co Ltd | Bank of Communications vs. China Mobile Limited |
| Ningxia Xiaoming vs. Agricultural Bank of | Ningxia Xiaoming vs. Postal Savings Bank | Ningxia Xiaoming vs. Bank of Communications | Ningxia Xiaoming vs. China Merchants Bank |
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 Stocks Directory module to find actively traded stocks across global markets.
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