Correlation Between Jiangnan Mould and Ningbo Tech
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Jiangnan Mould 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 Jiangnan Mould with a short position of Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Ningbo Tech.
Diversification Opportunities for Jiangnan Mould and Ningbo Tech
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangnan and Ningbo is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic 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 Jiangnan Mould 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 Jiangnan Mould Plastic 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 Jiangnan Mould i.e., Jiangnan Mould and Ningbo Tech go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Ningbo Tech
Assuming the 90 days trading horizon Jiangnan Mould Plastic is expected to under-perform the Ningbo Tech. In addition to that, Jiangnan Mould is 1.05 times more volatile than Ningbo Tech Bank Co. It trades about 0.0 of its total potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about 0.1 per unit of volatility. If you would invest 239.00 in Ningbo Tech Bank Co on October 5, 2024 and sell it today you would earn a total of 39.00 from holding Ningbo Tech Bank Co or generate 16.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangnan Mould Plastic vs. Ningbo Tech Bank Co
Performance |
Timeline |
Jiangnan Mould Plastic |
Ningbo Tech Bank |
Jiangnan Mould and Ningbo Tech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangnan Mould and Ningbo Tech
The main advantage of trading using opposite Jiangnan Mould and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould 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.Jiangnan Mould vs. Sichuan Hebang Biotechnology | Jiangnan Mould vs. Duzhe Publishing Media | Jiangnan Mould vs. Chinese Universe Publishing | Jiangnan Mould vs. Shanghai Action Education |
Ningbo Tech vs. China Life Insurance | Ningbo Tech vs. National Silicon Industry | Ningbo Tech vs. China Molybdenum Co | Ningbo Tech vs. Gansu Jiu Steel |
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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