Correlation Between Changchun BCHT and Ningbo Tech
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By analyzing existing cross correlation between Changchun BCHT Biotechnology and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Changchun BCHT 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 Changchun BCHT with a short position of Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun BCHT and Ningbo Tech.
Diversification Opportunities for Changchun BCHT and Ningbo Tech
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Changchun and Ningbo is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Changchun BCHT Biotechnology 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 Changchun BCHT 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 Changchun BCHT 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 Changchun BCHT i.e., Changchun BCHT and Ningbo Tech go up and down completely randomly.
Pair Corralation between Changchun BCHT and Ningbo Tech
Assuming the 90 days trading horizon Changchun BCHT Biotechnology is expected to under-perform the Ningbo Tech. But the stock apears to be less risky and, when comparing its historical volatility, Changchun BCHT Biotechnology is 1.24 times less risky than Ningbo Tech. The stock trades about -0.42 of its potential returns per unit of risk. The Ningbo Tech Bank Co is currently generating about -0.19 of returns per unit of risk over similar time horizon. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun BCHT Biotechnology vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Changchun BCHT Biote |
| Ningbo Tech Bank |
Changchun BCHT and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun BCHT and Ningbo Tech
The main advantage of trading using opposite Changchun BCHT and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun BCHT 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.| Changchun BCHT vs. Qingdao Foods Co | Changchun BCHT vs. Aba Chemicals Corp | Changchun BCHT vs. State Grid InformationCommunication | Changchun BCHT vs. Dymatic Chemicals |
| 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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