Correlation Between TianJin 712 and Ningbo Tech
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By analyzing existing cross correlation between TianJin 712 Communication and Ningbo Tech Bank Co, you can compare the effects of market volatilities on TianJin 712 and Ningbo Tech 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 TianJin 712 with a short position of Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Ningbo Tech.
Diversification Opportunities for TianJin 712 and Ningbo Tech
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TianJin and Ningbo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank and TianJin 712 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 TianJin 712 Communication are associated (or correlated) with Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of TianJin 712 i.e., TianJin 712 and Ningbo Tech go up and down completely randomly.
Pair Corralation between TianJin 712 and Ningbo Tech
Assuming the 90 days trading horizon TianJin 712 Communication is expected to under-perform the Ningbo Tech. In addition to that, TianJin 712 is 1.43 times more volatile than Ningbo Tech Bank Co. It trades about -0.41 of its total potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about -0.21 per unit of volatility. If you would invest 306.00 in Ningbo Tech Bank Co on October 16, 2024 and sell it today you would lose (31.00) from holding Ningbo Tech Bank Co or give up 10.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| TianJin 712 Communication |
| Ningbo Tech Bank |
TianJin 712 and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Ningbo Tech
The main advantage of trading using opposite TianJin 712 and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 position performs unexpectedly, Ningbo Tech 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 Tech will offset losses from the drop in Ningbo Tech's long position.| TianJin 712 vs. Lootom Telcovideo Network | TianJin 712 vs. LianChuang Electronic Technology | TianJin 712 vs. Tianjin Capital Environmental | TianJin 712 vs. Shenzhen MYS Environmental |
| Ningbo Tech vs. Ping An Insurance | Ningbo Tech vs. Bangyan Technology Co | Ningbo Tech vs. Porton Fine Chemicals | Ningbo Tech vs. Eyebright Medical 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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