Correlation Between Ningbo Jintian and ZJBC Information
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By analyzing existing cross correlation between Ningbo Jintian Copper and ZJBC Information Technology, you can compare the effects of market volatilities on Ningbo Jintian and ZJBC Information 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 Jintian with a short position of ZJBC Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and ZJBC Information.
Diversification Opportunities for Ningbo Jintian and ZJBC Information
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and ZJBC is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper and ZJBC Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZJBC Information Tec and Ningbo Jintian 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 Jintian Copper are associated (or correlated) with ZJBC Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZJBC Information Tec has no effect on the direction of Ningbo Jintian i.e., Ningbo Jintian and ZJBC Information go up and down completely randomly.
Pair Corralation between Ningbo Jintian and ZJBC Information
Assuming the 90 days trading horizon Ningbo Jintian Copper is expected to generate 0.46 times more return on investment than ZJBC Information. However, Ningbo Jintian Copper is 2.19 times less risky than ZJBC Information. It trades about 0.25 of its potential returns per unit of risk. ZJBC Information Technology is currently generating about -0.08 per unit of risk. If you would invest 574.00 in Ningbo Jintian Copper on November 3, 2024 and sell it today you would earn a total of 35.00 from holding Ningbo Jintian Copper or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. ZJBC Information Technology
Performance |
| Timeline |
| Ningbo Jintian Copper |
| ZJBC Information Tec |
Ningbo Jintian and ZJBC Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and ZJBC Information
The main advantage of trading using opposite Ningbo Jintian and ZJBC Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian position performs unexpectedly, ZJBC Information 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 ZJBC Information will offset losses from the drop in ZJBC Information's long position.| Ningbo Jintian vs. Sichuan Yahua Industrial | Ningbo Jintian vs. Shenzhen MYS Environmental | Ningbo Jintian vs. GreenTech Environmental Co | Ningbo Jintian vs. Shenzhen Shenbao Industrial |
| ZJBC Information vs. Shaanxi Meineng Clean | ZJBC Information vs. Sinofibers Technology Co | ZJBC Information vs. JCHX Mining Management | ZJBC Information vs. Kailong High 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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