Correlation Between Bank of China and Ningbo Ligong
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By analyzing existing cross correlation between Bank of China and Ningbo Ligong Online, you can compare the effects of market volatilities on Bank of China and Ningbo Ligong 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 Bank of China with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Ningbo Ligong.
Diversification Opportunities for Bank of China and Ningbo Ligong
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Ningbo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and Bank of China 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 Bank of China are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Bank of China i.e., Bank of China and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Bank of China and Ningbo Ligong
Assuming the 90 days trading horizon Bank of China is expected to generate 1.11 times less return on investment than Ningbo Ligong. But when comparing it to its historical volatility, Bank of China is 1.75 times less risky than Ningbo Ligong. It trades about 0.09 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 792.00 in Ningbo Ligong Online on September 12, 2024 and sell it today you would earn a total of 567.00 from holding Ningbo Ligong Online or generate 71.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Ningbo Ligong Online
Performance |
| Timeline |
| Bank of China |
| Ningbo Ligong Online |
Bank of China and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Ningbo Ligong
The main advantage of trading using opposite Bank of China and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China position performs unexpectedly, Ningbo Ligong 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 Ligong will offset losses from the drop in Ningbo Ligong's long position.| Bank of China vs. Chenzhou Jingui Silver | Bank of China vs. Hangzhou Pinming Software | Bank of China vs. Shandong Mining Machinery | Bank of China vs. Tibet Huayu Mining |
| Ningbo Ligong vs. Agricultural Bank of | Ningbo Ligong vs. Industrial and Commercial | Ningbo Ligong vs. Bank of China | Ningbo Ligong vs. PetroChina Co Ltd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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