Correlation Between Ningbo Jintian and Sunwave Communications
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By analyzing existing cross correlation between Ningbo Jintian Copper and Sunwave Communications Co, you can compare the effects of market volatilities on Ningbo Jintian and Sunwave Communications 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 Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Sunwave Communications.
Diversification Opportunities for Ningbo Jintian and Sunwave Communications
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Sunwave is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications 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 Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of Ningbo Jintian i.e., Ningbo Jintian and Sunwave Communications go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Sunwave Communications
Assuming the 90 days trading horizon Ningbo Jintian Copper is expected to generate 0.54 times more return on investment than Sunwave Communications. However, Ningbo Jintian Copper is 1.84 times less risky than Sunwave Communications. It trades about -0.27 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about -0.65 per unit of risk. If you would invest 654.00 in Ningbo Jintian Copper on October 16, 2024 and sell it today you would lose (81.00) from holding Ningbo Jintian Copper or give up 12.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. Sunwave Communications Co
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Sunwave Communications |
Ningbo Jintian and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Sunwave Communications
The main advantage of trading using opposite Ningbo Jintian and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian position performs unexpectedly, Sunwave Communications 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' long position.| Ningbo Jintian vs. Winner Medical Co | Ningbo Jintian vs. Marssenger Kitchenware Co | Ningbo Jintian vs. China World Trade | Ningbo Jintian vs. Allmed Medical Products |
| Sunwave Communications vs. Gan Yuan Foods | Sunwave Communications vs. Xiwang Foodstuffs Co | Sunwave Communications vs. Xiamen Jihong Package | Sunwave Communications vs. Guilin Seamild Foods |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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