Correlation Between Piotech and NBTM New
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By analyzing existing cross correlation between Piotech Inc A and NBTM New Materials, you can compare the effects of market volatilities on Piotech and NBTM New 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 Piotech with a short position of NBTM New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and NBTM New.
Diversification Opportunities for Piotech and NBTM New
Weak diversification
The 3 months correlation between Piotech and NBTM is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and NBTM New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBTM New Materials and Piotech 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 Piotech Inc A are associated (or correlated) with NBTM New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBTM New Materials has no effect on the direction of Piotech i.e., Piotech and NBTM New go up and down completely randomly.
Pair Corralation between Piotech and NBTM New
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the NBTM New. But the stock apears to be less risky and, when comparing its historical volatility, Piotech Inc A is 1.37 times less risky than NBTM New. The stock trades about -0.34 of its potential returns per unit of risk. The NBTM New Materials is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,603 in NBTM New Materials on September 28, 2024 and sell it today you would earn a total of 59.00 from holding NBTM New Materials or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. NBTM New Materials
Performance |
| Timeline |
| Piotech Inc A |
| NBTM New Materials |
Piotech and NBTM New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and NBTM New
The main advantage of trading using opposite Piotech and NBTM New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, NBTM New 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 NBTM New will offset losses from the drop in NBTM New's long position.| Piotech vs. Guocheng Mining Co | Piotech vs. Tianjin Silvery Dragon | Piotech vs. V V Food | Piotech vs. Jiahe Foods Industry |
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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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