Correlation Between Leaguer Shenzhen and Ningbo Tech
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By analyzing existing cross correlation between Leaguer Shenzhen MicroElectronics and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Leaguer Shenzhen 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 Leaguer Shenzhen with a short position of Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaguer Shenzhen and Ningbo Tech.
Diversification Opportunities for Leaguer Shenzhen and Ningbo Tech
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Leaguer and Ningbo is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Leaguer Shenzhen MicroElectron 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 Leaguer Shenzhen 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 Leaguer Shenzhen MicroElectronics 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 Leaguer Shenzhen i.e., Leaguer Shenzhen and Ningbo Tech go up and down completely randomly.
Pair Corralation between Leaguer Shenzhen and Ningbo Tech
Assuming the 90 days trading horizon Leaguer Shenzhen is expected to generate 1.02 times less return on investment than Ningbo Tech. In addition to that, Leaguer Shenzhen is 1.05 times more volatile than Ningbo Tech Bank Co. It trades about 0.08 of its total potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about 0.09 per unit of volatility. If you would invest 314.00 in Ningbo Tech Bank Co on September 5, 2024 and sell it today you would earn a total of 16.00 from holding Ningbo Tech Bank Co or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leaguer Shenzhen MicroElectron vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Leaguer Shenzhen Mic |
| Ningbo Tech Bank |
Leaguer Shenzhen and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaguer Shenzhen and Ningbo Tech
The main advantage of trading using opposite Leaguer Shenzhen and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaguer Shenzhen 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.| Leaguer Shenzhen vs. Cultural Investment Holdings | Leaguer Shenzhen vs. Gome Telecom Equipment | Leaguer Shenzhen vs. Bus Online Co | Leaguer Shenzhen vs. Holitech Technology Co |
| Ningbo Tech vs. Bomin Electronics Co | Ningbo Tech vs. Fuzhou Rockchip Electronics | Ningbo Tech vs. Guangzhou Zhujiang Brewery | Ningbo Tech vs. Leaguer Shenzhen MicroElectronics |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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