Correlation Between Nanjing Medlander and Ningbo MedicalSystem
Specify exactly 2 symbols:
By analyzing existing cross correlation between Nanjing Medlander Medical and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Nanjing Medlander 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 Nanjing Medlander with a short position of Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanjing Medlander and Ningbo MedicalSystem.
Diversification Opportunities for Nanjing Medlander and Ningbo MedicalSystem
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Nanjing and Ningbo is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Nanjing Medlander Medical and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem and Nanjing Medlander 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 Nanjing Medlander Medical 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 Nanjing Medlander i.e., Nanjing Medlander and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Nanjing Medlander and Ningbo MedicalSystem
Assuming the 90 days trading horizon Nanjing Medlander Medical is expected to under-perform the Ningbo MedicalSystem. In addition to that, Nanjing Medlander is 1.0 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about -0.1 of its total potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.03 per unit of volatility. If you would invest 1,137 in Ningbo MedicalSystem Biotechnology on August 29, 2024 and sell it today you would earn a total of 11.00 from holding Ningbo MedicalSystem Biotechnology or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanjing Medlander Medical vs. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Nanjing Medlander Medical |
| Ningbo MedicalSystem |
Nanjing Medlander and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanjing Medlander and Ningbo MedicalSystem
The main advantage of trading using opposite Nanjing Medlander and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanjing Medlander 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.| Nanjing Medlander vs. Industrial and Commercial | Nanjing Medlander vs. China Construction Bank | Nanjing Medlander vs. Agricultural Bank of | Nanjing Medlander vs. Bank of China |
| Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Agricultural Bank of | Ningbo MedicalSystem vs. Bank of China |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |