Correlation Between Zhuhai Comleader and Ningbo Homelink
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By analyzing existing cross correlation between Zhuhai Comleader Information and Ningbo Homelink Eco iTech, you can compare the effects of market volatilities on Zhuhai Comleader and Ningbo Homelink 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 Zhuhai Comleader with a short position of Ningbo Homelink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuhai Comleader and Ningbo Homelink.
Diversification Opportunities for Zhuhai Comleader and Ningbo Homelink
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhuhai and Ningbo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Zhuhai Comleader Information and Ningbo Homelink Eco iTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Homelink Eco and Zhuhai Comleader 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 Zhuhai Comleader Information are associated (or correlated) with Ningbo Homelink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Homelink Eco has no effect on the direction of Zhuhai Comleader i.e., Zhuhai Comleader and Ningbo Homelink go up and down completely randomly.
Pair Corralation between Zhuhai Comleader and Ningbo Homelink
Assuming the 90 days trading horizon Zhuhai Comleader Information is expected to generate 1.07 times more return on investment than Ningbo Homelink. However, Zhuhai Comleader is 1.07 times more volatile than Ningbo Homelink Eco iTech. It trades about -0.02 of its potential returns per unit of risk. Ningbo Homelink Eco iTech is currently generating about -0.06 per unit of risk. If you would invest 1,635 in Zhuhai Comleader Information on November 4, 2024 and sell it today you would lose (17.00) from holding Zhuhai Comleader Information or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhuhai Comleader Information vs. Ningbo Homelink Eco iTech
Performance |
| Timeline |
| Zhuhai Comleader Inf |
| Ningbo Homelink Eco |
Zhuhai Comleader and Ningbo Homelink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhuhai Comleader and Ningbo Homelink
The main advantage of trading using opposite Zhuhai Comleader and Ningbo Homelink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuhai Comleader position performs unexpectedly, Ningbo Homelink 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 Homelink will offset losses from the drop in Ningbo Homelink's long position.| Zhuhai Comleader vs. Huaibei Mining Holdings | Zhuhai Comleader vs. Aier Eye Hospital | Zhuhai Comleader vs. Jinhui Mining Co | Zhuhai Comleader vs. Hainan Mining Co |
| Ningbo Homelink vs. Wonders Information | Ningbo Homelink vs. Shenzhen SDG Information | Ningbo Homelink vs. China World Trade | Ningbo Homelink vs. Easyhome New Retail |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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