Correlation Between Sichuan Hebang and Ningbo Boway
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By analyzing existing cross correlation between Sichuan Hebang Biotechnology and Ningbo Boway Alloy, you can compare the effects of market volatilities on Sichuan Hebang and Ningbo Boway 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 Sichuan Hebang with a short position of Ningbo Boway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Hebang and Ningbo Boway.
Diversification Opportunities for Sichuan Hebang and Ningbo Boway
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Ningbo is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Hebang Biotechnology and Ningbo Boway Alloy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Boway Alloy and Sichuan Hebang 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 Sichuan Hebang Biotechnology are associated (or correlated) with Ningbo Boway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Boway Alloy has no effect on the direction of Sichuan Hebang i.e., Sichuan Hebang and Ningbo Boway go up and down completely randomly.
Pair Corralation between Sichuan Hebang and Ningbo Boway
Assuming the 90 days trading horizon Sichuan Hebang is expected to generate 1.55 times less return on investment than Ningbo Boway. In addition to that, Sichuan Hebang is 1.4 times more volatile than Ningbo Boway Alloy. It trades about 0.09 of its total potential returns per unit of risk. Ningbo Boway Alloy is currently generating about 0.19 per unit of volatility. If you would invest 1,840 in Ningbo Boway Alloy on September 28, 2024 and sell it today you would earn a total of 161.00 from holding Ningbo Boway Alloy or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Hebang Biotechnology vs. Ningbo Boway Alloy
Performance |
| Timeline |
| Sichuan Hebang Biote |
| Ningbo Boway Alloy |
Sichuan Hebang and Ningbo Boway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Hebang and Ningbo Boway
The main advantage of trading using opposite Sichuan Hebang and Ningbo Boway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Hebang position performs unexpectedly, Ningbo Boway 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 Boway will offset losses from the drop in Ningbo Boway's long position.| Sichuan Hebang vs. Zijin Mining Group | Sichuan Hebang vs. Wanhua Chemical Group | Sichuan Hebang vs. Baoshan Iron Steel | Sichuan Hebang vs. Shandong Gold Mining |
| Ningbo Boway vs. Shanghai Broadband Technology | Ningbo Boway vs. Anhui Huaheng Biotechnology | Ningbo Boway vs. Sichuan Hebang Biotechnology | Ningbo Boway vs. RoadMain T Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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