Correlation Between Kunshan Guoli and Ningbo MedicalSystem
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kunshan Guoli Electronic and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Kunshan Guoli 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 Kunshan Guoli with a short position of Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunshan Guoli and Ningbo MedicalSystem.
Diversification Opportunities for Kunshan Guoli and Ningbo MedicalSystem
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kunshan and Ningbo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Kunshan Guoli Electronic and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem and Kunshan Guoli 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 Kunshan Guoli Electronic 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 Kunshan Guoli i.e., Kunshan Guoli and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Kunshan Guoli and Ningbo MedicalSystem
Assuming the 90 days trading horizon Kunshan Guoli Electronic is expected to under-perform the Ningbo MedicalSystem. In addition to that, Kunshan Guoli is 1.32 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about -0.07 of its total potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.04 per unit of volatility. If you would invest 1,168 in Ningbo MedicalSystem Biotechnology on September 13, 2024 and sell it today you would earn a total of 17.00 from holding Ningbo MedicalSystem Biotechnology or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunshan Guoli Electronic vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Kunshan Guoli Electronic |
| Ningbo MedicalSystem |
Kunshan Guoli and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunshan Guoli and Ningbo MedicalSystem
The main advantage of trading using opposite Kunshan Guoli and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunshan Guoli 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.| Kunshan Guoli vs. Industrial and Commercial | Kunshan Guoli vs. Agricultural Bank of | Kunshan Guoli vs. China Construction Bank | Kunshan Guoli vs. Bank of China |
| Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Bank of China | Ningbo MedicalSystem vs. Agricultural Bank of |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |