Correlation Between Ningbo Construction and Vontron Technology
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By analyzing existing cross correlation between Ningbo Construction Co and Vontron Technology Co, you can compare the effects of market volatilities on Ningbo Construction and Vontron Technology 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 Construction with a short position of Vontron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Vontron Technology.
Diversification Opportunities for Ningbo Construction and Vontron Technology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Vontron is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Vontron Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontron Technology and Ningbo Construction 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 Construction Co are associated (or correlated) with Vontron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontron Technology has no effect on the direction of Ningbo Construction i.e., Ningbo Construction and Vontron Technology go up and down completely randomly.
Pair Corralation between Ningbo Construction and Vontron Technology
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 1.2 times more return on investment than Vontron Technology. However, Ningbo Construction is 1.2 times more volatile than Vontron Technology Co. It trades about 0.02 of its potential returns per unit of risk. Vontron Technology Co is currently generating about 0.02 per unit of risk. If you would invest 465.00 in Ningbo Construction Co on September 12, 2024 and sell it today you would earn a total of 15.00 from holding Ningbo Construction Co or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. Vontron Technology Co
Performance |
| Timeline |
| Ningbo Construction |
| Vontron Technology |
Ningbo Construction and Vontron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Vontron Technology
The main advantage of trading using opposite Ningbo Construction and Vontron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction position performs unexpectedly, Vontron Technology 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 Vontron Technology will offset losses from the drop in Vontron Technology's long position.| Ningbo Construction vs. Agricultural Bank of | Ningbo Construction vs. Industrial and Commercial | Ningbo Construction vs. Bank of China | Ningbo Construction vs. PetroChina Co Ltd |
| Vontron Technology vs. Huitong Construction Group | Vontron Technology vs. Ningbo Construction Co | Vontron Technology vs. ButOne Information Corp | Vontron Technology vs. Shenzhen Zhongzhuang Construction |
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 Stocks Directory module to find actively traded stocks across global markets.
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