Correlation Between Capital Income and Ningbo Thermal
Specify exactly 2 symbols:
By analyzing existing cross correlation between Capital Income Builder and Ningbo Thermal Power, you can compare the effects of market volatilities on Capital Income and Ningbo Thermal 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 Capital Income with a short position of Ningbo Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Income and Ningbo Thermal.
Diversification Opportunities for Capital Income and Ningbo Thermal
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Capital and Ningbo is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Capital Income Builder and Ningbo Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Thermal Power and Capital Income 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 Capital Income Builder are associated (or correlated) with Ningbo Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Thermal Power has no effect on the direction of Capital Income i.e., Capital Income and Ningbo Thermal go up and down completely randomly.
Pair Corralation between Capital Income and Ningbo Thermal
Assuming the 90 days horizon Capital Income Builder is expected to generate 0.32 times more return on investment than Ningbo Thermal. However, Capital Income Builder is 3.08 times less risky than Ningbo Thermal. It trades about 0.26 of its potential returns per unit of risk. Ningbo Thermal Power is currently generating about -0.1 per unit of risk. If you would invest 6,893 in Capital Income Builder on November 3, 2024 and sell it today you would earn a total of 206.00 from holding Capital Income Builder or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Capital Income Builder vs. Ningbo Thermal Power
Performance |
| Timeline |
| Capital Income Builder |
| Ningbo Thermal Power |
Capital Income and Ningbo Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Income and Ningbo Thermal
The main advantage of trading using opposite Capital Income and Ningbo Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Income position performs unexpectedly, Ningbo Thermal 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 Thermal will offset losses from the drop in Ningbo Thermal's long position.| Capital Income vs. Dws Global Macro | Capital Income vs. Rbb Fund | Capital Income vs. Kinetics Global Fund | Capital Income vs. Ms Global Fixed |
| Ningbo Thermal vs. Thunder Software Technology | Ningbo Thermal vs. Wuhan Yangtze Communication | Ningbo Thermal vs. Fibocom Wireless | Ningbo Thermal vs. Jiangsu Hoperun Software |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |