Correlation Between Ningbo Construction and Niutech Environment
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By analyzing existing cross correlation between Ningbo Construction Co and Niutech Environment Technology, you can compare the effects of market volatilities on Ningbo Construction and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Niutech Environment.
Diversification Opportunities for Ningbo Construction and Niutech Environment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Niutech is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Ningbo Construction i.e., Ningbo Construction and Niutech Environment go up and down completely randomly.
Pair Corralation between Ningbo Construction and Niutech Environment
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 1.55 times more return on investment than Niutech Environment. However, Ningbo Construction is 1.55 times more volatile than Niutech Environment Technology. It trades about 0.13 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about -0.07 per unit of risk. If you would invest 413.00 in Ningbo Construction Co on August 30, 2024 and sell it today you would earn a total of 42.00 from holding Ningbo Construction Co or generate 10.17% 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. Niutech Environment Technology
Performance |
| Timeline |
| Ningbo Construction |
| Niutech Environment |
Ningbo Construction and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Niutech Environment
The main advantage of trading using opposite Ningbo Construction and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Ningbo Construction vs. Cangzhou Mingzhu Plastic | Ningbo Construction vs. GRIPM Advanced Materials | Ningbo Construction vs. Advanced Technology Materials | Ningbo Construction vs. China Publishing Media |
| Niutech Environment vs. Dhc Software Co | Niutech Environment vs. China Railway Construction | Niutech Environment vs. Long Yuan Construction | Niutech Environment vs. Guangzhou KingTeller Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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