Correlation Between Ningbo Jintian and Allwin Telecommunicatio
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By analyzing existing cross correlation between Ningbo Jintian Copper and Allwin Telecommunication Co, you can compare the effects of market volatilities on Ningbo Jintian and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Allwin Telecommunicatio.
Diversification Opportunities for Ningbo Jintian and Allwin Telecommunicatio
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Allwin is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Ningbo Jintian i.e., Ningbo Jintian and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Allwin Telecommunicatio
Assuming the 90 days trading horizon Ningbo Jintian Copper is expected to generate 0.59 times more return on investment than Allwin Telecommunicatio. However, Ningbo Jintian Copper is 1.69 times less risky than Allwin Telecommunicatio. It trades about -0.02 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.09 per unit of risk. If you would invest 616.00 in Ningbo Jintian Copper on October 30, 2024 and sell it today you would lose (7.00) from holding Ningbo Jintian Copper or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Allwin Telecommunicatio |
Ningbo Jintian and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Allwin Telecommunicatio
The main advantage of trading using opposite Ningbo Jintian and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Ningbo Jintian vs. Anhui Transport Consulting | Ningbo Jintian vs. Road Environment Technology | Ningbo Jintian vs. Kidswant Children Products | Ningbo Jintian vs. Guangdong Qunxing Toys |
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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