Correlation Between Piotech and Ningbo Construction
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By analyzing existing cross correlation between Piotech Inc A and Ningbo Construction Co, you can compare the effects of market volatilities on Piotech and Ningbo Construction 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 Ningbo Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Ningbo Construction.
Diversification Opportunities for Piotech and Ningbo Construction
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Piotech and Ningbo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Ningbo Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Construction 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 Ningbo Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Construction has no effect on the direction of Piotech i.e., Piotech and Ningbo Construction go up and down completely randomly.
Pair Corralation between Piotech and Ningbo Construction
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the Ningbo Construction. In addition to that, Piotech is 1.61 times more volatile than Ningbo Construction Co. It trades about -0.01 of its total potential returns per unit of risk. Ningbo Construction Co is currently generating about 0.04 per unit of volatility. If you would invest 421.00 in Ningbo Construction Co on September 4, 2024 and sell it today you would earn a total of 95.00 from holding Ningbo Construction Co or generate 22.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Ningbo Construction Co
Performance |
| Timeline |
| Piotech Inc A |
| Ningbo Construction |
Piotech and Ningbo Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Ningbo Construction
The main advantage of trading using opposite Piotech and Ningbo Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Ningbo Construction 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 Construction will offset losses from the drop in Ningbo Construction's long position.| Piotech vs. Marssenger Kitchenware Co | Piotech vs. Elite Color Environmental | Piotech vs. Central Plains Environment | Piotech vs. Bengang Steel Plates |
| Ningbo Construction vs. China Life Insurance | Ningbo Construction vs. Cinda Securities Co | Ningbo Construction vs. Piotech Inc A | Ningbo Construction vs. Dongxing Sec 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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