Correlation Between China Publishing and Ningbo Thermal
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By analyzing existing cross correlation between China Publishing Media and Ningbo Thermal Power, you can compare the effects of market volatilities on China Publishing and Ningbo Thermal 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 China Publishing with a short position of Ningbo Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Publishing and Ningbo Thermal.
Diversification Opportunities for China Publishing and Ningbo Thermal
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Ningbo is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding China Publishing Media and Ningbo Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Thermal Power and China Publishing 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 China Publishing Media are associated (or correlated) with Ningbo Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Thermal Power has no effect on the direction of China Publishing i.e., China Publishing and Ningbo Thermal go up and down completely randomly.
Pair Corralation between China Publishing and Ningbo Thermal
Assuming the 90 days trading horizon China Publishing Media is expected to under-perform the Ningbo Thermal. In addition to that, China Publishing is 1.34 times more volatile than Ningbo Thermal Power. It trades about -0.02 of its total potential returns per unit of risk. Ningbo Thermal Power is currently generating about 0.0 per unit of volatility. If you would invest 415.00 in Ningbo Thermal Power on October 16, 2024 and sell it today you would lose (34.00) from holding Ningbo Thermal Power or give up 8.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Publishing Media vs. Ningbo Thermal Power
Performance |
| Timeline |
| China Publishing Media |
| Ningbo Thermal Power |
China Publishing and Ningbo Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Publishing and Ningbo Thermal
The main advantage of trading using opposite China Publishing and Ningbo Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Publishing position performs unexpectedly, Ningbo Thermal 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 Ningbo Thermal will offset losses from the drop in Ningbo Thermal's long position.| China Publishing vs. Xiangyu Medical Co | China Publishing vs. Holitech Technology Co | China Publishing vs. Chongqing Brewery Co | China Publishing vs. Sinofibers Technology Co |
| Ningbo Thermal vs. Offcn Education Technology | Ningbo Thermal vs. Tangel Publishing | Ningbo Thermal vs. China Publishing Media | Ningbo Thermal vs. Duzhe Publishing Media |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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