Correlation Between Ningbo Jintian and Shenzhen Bingchuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Jintian Copper and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on Ningbo Jintian and Shenzhen Bingchuan 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 Shenzhen Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Shenzhen Bingchuan.
Diversification Opportunities for Ningbo Jintian and Shenzhen Bingchuan
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Shenzhen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan 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 Shenzhen Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of Ningbo Jintian i.e., Ningbo Jintian and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Shenzhen Bingchuan
Assuming the 90 days trading horizon Ningbo Jintian Copper is expected to under-perform the Shenzhen Bingchuan. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Jintian Copper is 1.8 times less risky than Shenzhen Bingchuan. The stock trades about -0.08 of its potential returns per unit of risk. The Shenzhen Bingchuan Network is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,024 in Shenzhen Bingchuan Network on October 28, 2024 and sell it today you would earn a total of 175.00 from holding Shenzhen Bingchuan Network or generate 8.65% 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. Shenzhen Bingchuan Network
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Shenzhen Bingchuan |
Ningbo Jintian and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Shenzhen Bingchuan
The main advantage of trading using opposite Ningbo Jintian and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian position performs unexpectedly, Shenzhen Bingchuan 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 Shenzhen Bingchuan will offset losses from the drop in Shenzhen Bingchuan's long position.| Ningbo Jintian vs. Dhc Software Co | Ningbo Jintian vs. Heilongjiang Transport Development | Ningbo Jintian vs. Shenzhen Urban Transport | Ningbo Jintian vs. Kuang Chi Technologies |
| Shenzhen Bingchuan vs. Fuda Alloy Materials | Shenzhen Bingchuan vs. Lander Sports Development | Shenzhen Bingchuan vs. Sportsoul Co Ltd | Shenzhen Bingchuan vs. Super Dragon Engineering Plastics |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |