Correlation Between Ningbo MedicalSystem and Guangzhou Boji
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By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Guangzhou Boji Medical, you can compare the effects of market volatilities on Ningbo MedicalSystem and Guangzhou Boji 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 Ningbo MedicalSystem with a short position of Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Guangzhou Boji.
Diversification Opportunities for Ningbo MedicalSystem and Guangzhou Boji
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical and Ningbo MedicalSystem 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 Ningbo MedicalSystem Biotechnology are associated (or correlated) with Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Guangzhou Boji
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to under-perform the Guangzhou Boji. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo MedicalSystem Biotechnology is 1.96 times less risky than Guangzhou Boji. The stock trades about -0.14 of its potential returns per unit of risk. The Guangzhou Boji Medical is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 892.00 in Guangzhou Boji Medical on September 26, 2024 and sell it today you would earn a total of 28.00 from holding Guangzhou Boji Medical or generate 3.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Guangzhou Boji Medical
Performance |
Timeline |
Ningbo MedicalSystem |
Guangzhou Boji Medical |
Ningbo MedicalSystem and Guangzhou Boji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ningbo MedicalSystem and Guangzhou Boji
The main advantage of trading using opposite Ningbo MedicalSystem and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Guangzhou Boji 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 Guangzhou Boji will offset losses from the drop in Guangzhou Boji's long position.Ningbo MedicalSystem vs. Industrial and Commercial | Ningbo MedicalSystem vs. Agricultural Bank of | Ningbo MedicalSystem vs. China Construction Bank | Ningbo MedicalSystem vs. Bank of China |
Guangzhou Boji vs. Poly Real Estate | Guangzhou Boji vs. China Vanke Co | Guangzhou Boji vs. China Merchants Shekou | Guangzhou Boji vs. Huafa Industrial Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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