Correlation Between Ningbo Construction and Qiaoyin Environmental
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By analyzing existing cross correlation between Ningbo Construction Co and Qiaoyin Environmental Tech, you can compare the effects of market volatilities on Ningbo Construction and Qiaoyin Environmental 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 Qiaoyin Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Qiaoyin Environmental.
Diversification Opportunities for Ningbo Construction and Qiaoyin Environmental
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Qiaoyin is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Qiaoyin Environmental Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qiaoyin Environmental 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 Qiaoyin Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qiaoyin Environmental has no effect on the direction of Ningbo Construction i.e., Ningbo Construction and Qiaoyin Environmental go up and down completely randomly.
Pair Corralation between Ningbo Construction and Qiaoyin Environmental
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 1.08 times more return on investment than Qiaoyin Environmental. However, Ningbo Construction is 1.08 times more volatile than Qiaoyin Environmental Tech. It trades about 0.01 of its potential returns per unit of risk. Qiaoyin Environmental Tech is currently generating about 0.01 per unit of risk. If you would invest 444.00 in Ningbo Construction Co on October 18, 2024 and sell it today you would lose (30.00) from holding Ningbo Construction Co or give up 6.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. Qiaoyin Environmental Tech
Performance |
| Timeline |
| Ningbo Construction |
| Qiaoyin Environmental |
Ningbo Construction and Qiaoyin Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Qiaoyin Environmental
The main advantage of trading using opposite Ningbo Construction and Qiaoyin Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction position performs unexpectedly, Qiaoyin Environmental 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 Qiaoyin Environmental will offset losses from the drop in Qiaoyin Environmental's long position.| Ningbo Construction vs. Wuhan Yangtze Communication | Ningbo Construction vs. Tongyu Communication | Ningbo Construction vs. Easyhome New Retail | Ningbo Construction vs. Guangxi Wuzhou Communications |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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