Correlation Between GRG Banking and Ningbo Bird
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By analyzing existing cross correlation between GRG Banking Equipment and Ningbo Bird Co, you can compare the effects of market volatilities on GRG Banking and Ningbo Bird 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 GRG Banking with a short position of Ningbo Bird. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Ningbo Bird.
Diversification Opportunities for GRG Banking and Ningbo Bird
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRG and Ningbo is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Ningbo Bird Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Bird and GRG Banking 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 GRG Banking Equipment are associated (or correlated) with Ningbo Bird. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Bird has no effect on the direction of GRG Banking i.e., GRG Banking and Ningbo Bird go up and down completely randomly.
Pair Corralation between GRG Banking and Ningbo Bird
Assuming the 90 days trading horizon GRG Banking is expected to generate 2.85 times less return on investment than Ningbo Bird. But when comparing it to its historical volatility, GRG Banking Equipment is 1.51 times less risky than Ningbo Bird. It trades about 0.04 of its potential returns per unit of risk. Ningbo Bird Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 427.00 in Ningbo Bird Co on September 28, 2024 and sell it today you would earn a total of 66.00 from holding Ningbo Bird Co or generate 15.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
GRG Banking Equipment vs. Ningbo Bird Co
Performance |
Timeline |
GRG Banking Equipment |
Ningbo Bird |
GRG Banking and Ningbo Bird Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GRG Banking and Ningbo Bird
The main advantage of trading using opposite GRG Banking and Ningbo Bird positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Ningbo Bird 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 Bird will offset losses from the drop in Ningbo Bird's long position.GRG Banking vs. Shandong Longquan Pipeline | GRG Banking vs. Zhejiang Construction Investment | GRG Banking vs. Runjian Communication Co | GRG Banking vs. Jiangsu Yueda Investment |
Ningbo Bird vs. Industrial and Commercial | Ningbo Bird vs. Agricultural Bank of | Ningbo Bird vs. China Construction Bank | Ningbo Bird vs. Bank of China |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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