Correlation Between NBTM New and Beijing Shunxin
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By analyzing existing cross correlation between NBTM New Materials and Beijing Shunxin Agriculture, you can compare the effects of market volatilities on NBTM New and Beijing Shunxin 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 NBTM New with a short position of Beijing Shunxin. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBTM New and Beijing Shunxin.
Diversification Opportunities for NBTM New and Beijing Shunxin
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NBTM and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding NBTM New Materials and Beijing Shunxin Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shunxin Agri and NBTM New 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 NBTM New Materials are associated (or correlated) with Beijing Shunxin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shunxin Agri has no effect on the direction of NBTM New i.e., NBTM New and Beijing Shunxin go up and down completely randomly.
Pair Corralation between NBTM New and Beijing Shunxin
Assuming the 90 days trading horizon NBTM New is expected to generate 1.92 times less return on investment than Beijing Shunxin. In addition to that, NBTM New is 1.03 times more volatile than Beijing Shunxin Agriculture. It trades about 0.09 of its total potential returns per unit of risk. Beijing Shunxin Agriculture is currently generating about 0.18 per unit of volatility. If you would invest 1,412 in Beijing Shunxin Agriculture on September 18, 2024 and sell it today you would earn a total of 596.00 from holding Beijing Shunxin Agriculture or generate 42.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
NBTM New Materials vs. Beijing Shunxin Agriculture
Performance |
Timeline |
NBTM New Materials |
Beijing Shunxin Agri |
NBTM New and Beijing Shunxin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NBTM New and Beijing Shunxin
The main advantage of trading using opposite NBTM New and Beijing Shunxin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBTM New position performs unexpectedly, Beijing Shunxin 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 Beijing Shunxin will offset losses from the drop in Beijing Shunxin's long position.NBTM New vs. BeiGene | NBTM New vs. Kweichow Moutai Co | NBTM New vs. Beijing Roborock Technology | NBTM New vs. G bits Network Technology |
Beijing Shunxin vs. HeBei Jinniu Chemical | Beijing Shunxin vs. NBTM New Materials | Beijing Shunxin vs. China Railway Materials | Beijing Shunxin vs. Nanya New Material |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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