Correlation Between Ningbo MedicalSystem and Jinsanjiang Silicon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo MedicalSystem Biotechnology and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Ningbo MedicalSystem and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo MedicalSystem and Jinsanjiang Silicon.
Diversification Opportunities for Ningbo MedicalSystem and Jinsanjiang Silicon
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Jinsanjiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo MedicalSystem Biotechno and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Ningbo MedicalSystem i.e., Ningbo MedicalSystem and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Ningbo MedicalSystem and Jinsanjiang Silicon
Assuming the 90 days trading horizon Ningbo MedicalSystem Biotechnology is expected to under-perform the Jinsanjiang Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo MedicalSystem Biotechnology is 2.12 times less risky than Jinsanjiang Silicon. The stock trades about -0.18 of its potential returns per unit of risk. The Jinsanjiang Silicon Material is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,111 in Jinsanjiang Silicon Material on September 25, 2024 and sell it today you would earn a total of 148.00 from holding Jinsanjiang Silicon Material or generate 13.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Ningbo MedicalSystem Biotechno vs. Jinsanjiang Silicon Material
Performance |
Timeline |
Ningbo MedicalSystem |
Jinsanjiang Silicon |
Ningbo MedicalSystem and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ningbo MedicalSystem and Jinsanjiang Silicon
The main advantage of trading using opposite Ningbo MedicalSystem and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo MedicalSystem position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.Ningbo MedicalSystem vs. Oppein Home Group | Ningbo MedicalSystem vs. Easyhome New Retail | Ningbo MedicalSystem vs. Union Semiconductor Co | Ningbo MedicalSystem vs. Mengtian Home Group |
Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Shandong Gold Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |