Correlation Between Beijing Roborock and Ningbo Thermal
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By analyzing existing cross correlation between Beijing Roborock Technology and Ningbo Thermal Power, you can compare the effects of market volatilities on Beijing Roborock and Ningbo Thermal 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 Beijing Roborock with a short position of Ningbo Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Roborock and Ningbo Thermal.
Diversification Opportunities for Beijing Roborock and Ningbo Thermal
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beijing and Ningbo is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Roborock Technology and Ningbo Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Thermal Power and Beijing Roborock 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 Beijing Roborock Technology are associated (or correlated) with Ningbo Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Thermal Power has no effect on the direction of Beijing Roborock i.e., Beijing Roborock and Ningbo Thermal go up and down completely randomly.
Pair Corralation between Beijing Roborock and Ningbo Thermal
Assuming the 90 days trading horizon Beijing Roborock Technology is expected to generate 1.65 times more return on investment than Ningbo Thermal. However, Beijing Roborock is 1.65 times more volatile than Ningbo Thermal Power. It trades about 0.02 of its potential returns per unit of risk. Ningbo Thermal Power is currently generating about 0.01 per unit of risk. If you would invest 19,238 in Beijing Roborock Technology on September 28, 2024 and sell it today you would earn a total of 1,762 from holding Beijing Roborock Technology or generate 9.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Beijing Roborock Technology vs. Ningbo Thermal Power
Performance |
| Timeline |
| Beijing Roborock Tec |
| Ningbo Thermal Power |
Beijing Roborock and Ningbo Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Roborock and Ningbo Thermal
The main advantage of trading using opposite Beijing Roborock and Ningbo Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Roborock position performs unexpectedly, Ningbo Thermal 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 Thermal will offset losses from the drop in Ningbo Thermal's long position.| Beijing Roborock vs. Qijing Machinery | Beijing Roborock vs. Ningbo Construction Co | Beijing Roborock vs. Allied Machinery Co | Beijing Roborock vs. Shanghai Construction Group |
| Ningbo Thermal vs. BeiGene | Ningbo Thermal vs. Kweichow Moutai Co | Ningbo Thermal vs. Beijing Roborock Technology | Ningbo Thermal vs. G bits Network 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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