Correlation Between Zoy Home and Ningbo MedicalSystem
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zoy Home Furnishing and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Zoy Home and Ningbo MedicalSystem 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 Zoy Home with a short position of Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and Ningbo MedicalSystem.
Diversification Opportunities for Zoy Home and Ningbo MedicalSystem
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zoy and Ningbo is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem and Zoy Home 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 Zoy Home Furnishing are associated (or correlated) with Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Zoy Home i.e., Zoy Home and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Zoy Home and Ningbo MedicalSystem
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to under-perform the Ningbo MedicalSystem. In addition to that, Zoy Home is 1.17 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about 0.0 of its total potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.08 per unit of volatility. If you would invest 930.00 in Ningbo MedicalSystem Biotechnology on September 12, 2024 and sell it today you would earn a total of 233.00 from holding Ningbo MedicalSystem Biotechnology or generate 25.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Zoy Home Furnishing |
| Ningbo MedicalSystem |
Zoy Home and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and Ningbo MedicalSystem
The main advantage of trading using opposite Zoy Home and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home position performs unexpectedly, Ningbo MedicalSystem 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 MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Zoy Home vs. Lutian Machinery Co | Zoy Home vs. PetroChina Co Ltd | Zoy Home vs. Bank of China | Zoy Home vs. Gansu Jiu Steel |
| Ningbo MedicalSystem vs. Cultural Investment Holdings | Ningbo MedicalSystem vs. Gome Telecom Equipment | Ningbo MedicalSystem vs. Holitech Technology Co | Ningbo MedicalSystem vs. Zotye Automobile 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |