Correlation Between Ningbo Jintian and Cansino Biologics
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By analyzing existing cross correlation between Ningbo Jintian Copper and Cansino Biologics, you can compare the effects of market volatilities on Ningbo Jintian and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Cansino Biologics.
Diversification Opportunities for Ningbo Jintian and Cansino Biologics
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Cansino is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Ningbo Jintian i.e., Ningbo Jintian and Cansino Biologics go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Cansino Biologics
Assuming the 90 days trading horizon Ningbo Jintian is expected to generate 1.46 times less return on investment than Cansino Biologics. But when comparing it to its historical volatility, Ningbo Jintian Copper is 1.53 times less risky than Cansino Biologics. It trades about 0.03 of its potential returns per unit of risk. Cansino Biologics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,389 in Cansino Biologics on November 5, 2024 and sell it today you would earn a total of 413.00 from holding Cansino Biologics or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. Cansino Biologics
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Cansino Biologics |
Ningbo Jintian and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Cansino Biologics
The main advantage of trading using opposite Ningbo Jintian and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.| Ningbo Jintian vs. Zijin Mining Group | Ningbo Jintian vs. Wanhua Chemical Group | Ningbo Jintian vs. Baoshan Iron Steel | Ningbo Jintian vs. Shandong Gold Mining |
| Cansino Biologics vs. Zhongshan Broad Ocean Motor | Cansino Biologics vs. Central Plains Environment | Cansino Biologics vs. Shanghai Broadband Technology | Cansino Biologics vs. Hangzhou Guotai Environmental |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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