Correlation Between Shanghai Rightongene and Ningbo Tech
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By analyzing existing cross correlation between Shanghai Rightongene Biotechnology and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Shanghai Rightongene and Ningbo Tech 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 Shanghai Rightongene with a short position of Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Rightongene and Ningbo Tech.
Diversification Opportunities for Shanghai Rightongene and Ningbo Tech
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Ningbo is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Rightongene Biotechno and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank and Shanghai Rightongene 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 Shanghai Rightongene Biotechnology are associated (or correlated) with Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Shanghai Rightongene i.e., Shanghai Rightongene and Ningbo Tech go up and down completely randomly.
Pair Corralation between Shanghai Rightongene and Ningbo Tech
Assuming the 90 days trading horizon Shanghai Rightongene Biotechnology is expected to under-perform the Ningbo Tech. In addition to that, Shanghai Rightongene is 1.97 times more volatile than Ningbo Tech Bank Co. It trades about -0.13 of its total potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about -0.19 per unit of volatility. If you would invest 311.00 in Ningbo Tech Bank Co on October 14, 2024 and sell it today you would lose (28.00) from holding Ningbo Tech Bank Co or give up 9.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Rightongene Biotechno vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Shanghai Rightongene |
| Ningbo Tech Bank |
Shanghai Rightongene and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Rightongene and Ningbo Tech
The main advantage of trading using opposite Shanghai Rightongene and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Rightongene position performs unexpectedly, Ningbo Tech 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 Tech will offset losses from the drop in Ningbo Tech's long position.| Shanghai Rightongene vs. Suzhou Weizhixiang Food | Shanghai Rightongene vs. Zhongyin Babi Food | Shanghai Rightongene vs. Zhengzhou Qianweiyangchu Food | Shanghai Rightongene vs. Panda Dairy Corp |
| Ningbo Tech vs. Shanghai Rightongene Biotechnology | Ningbo Tech vs. Strait Innovation Internet | Ningbo Tech vs. Tongyu Communication | Ningbo Tech vs. Changchun BCHT Biotechnology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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