Correlation Between BANK OF NINGBO and DOW

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Can any of the company-specific risk be diversified away by investing in both BANK OF NINGBO and DOW at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BANK OF NINGBO and DOW into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANK OF NINGBO and DOW, you can compare the effects of market volatilities on BANK OF NINGBO and DOW 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 BANK OF NINGBO with a short position of DOW. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK OF NINGBO and DOW.

Diversification Opportunities for BANK OF NINGBO and DOW

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between 002142 and DOW is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF NINGBO CO and DOW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOW and BANK OF NINGBO 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 BANK OF NINGBO are associated (or correlated) with DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of BANK OF NINGBO i.e., BANK OF NINGBO and DOW go up and down completely randomly.
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Pair Corralation between BANK OF NINGBO and DOW

If you would invest (100.00)  in BANK OF NINGBO on April 2, 2022 and sell it today you would earn a total of  100.00  from holding BANK OF NINGBO or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

BANK OF NINGBO CO  vs.  DOW

 Performance (%) 
      Timeline 

BANK OF NINGBO and DOW Volatility Contrast

 Predicted Return Density 
      Returns 

BANK OF NINGBO

Pair trading matchups for BANK OF NINGBO

ATT vs. BANK OF NINGBO
MITIE GROUP vs. BANK OF NINGBO
Seneca Foods vs. BANK OF NINGBO
Alzamend Neuro vs. BANK OF NINGBO
Context Therapeutics vs. BANK OF NINGBO
Novan vs. BANK OF NINGBO
BP PLC vs. BANK OF NINGBO
Visa vs. BANK OF NINGBO
Solo Brands vs. BANK OF NINGBO
Vmware vs. BANK OF NINGBO
Calyxt vs. BANK OF NINGBO
Cyclacel Pharmaceuti vs. BANK OF NINGBO
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against BANK OF NINGBO as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. BANK OF NINGBO's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, BANK OF NINGBO's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to BANK OF NINGBO.

DOW

Pair trading matchups for DOW

Solo Brands vs. DOW
Vmware vs. DOW
Arca Biopharma vs. DOW
Liquidia Corp vs. DOW
Visa vs. DOW
RENEWI PLC vs. DOW
Alphabet vs. DOW
Context Therapeutics vs. DOW
Novan vs. DOW
International Business vs. DOW
GLAXOSMITHKLINE PLC vs. DOW
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against DOW as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. DOW's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, DOW's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to DOW.

Pair Trading with BANK OF NINGBO and DOW

The main advantage of trading using opposite BANK OF NINGBO and DOW positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK OF NINGBO position performs unexpectedly, DOW 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 DOW will offset losses from the drop in DOW's long position.

BANK OF NINGBO

Pair trading matchups for BANK OF NINGBO

International Business vs. BANK OF NINGBO
BP PLC vs. BANK OF NINGBO
ATT vs. BANK OF NINGBO
Visa vs. BANK OF NINGBO
Vmware vs. BANK OF NINGBO
Liquidia Corp vs. BANK OF NINGBO
Sentinelone Inc vs. BANK OF NINGBO
Arca Biopharma vs. BANK OF NINGBO
Seneca Foods vs. BANK OF NINGBO
GLAXOSMITHKLINE PLC vs. BANK OF NINGBO
Cyclacel Pharmaceuti vs. BANK OF NINGBO
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against BANK OF NINGBO as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. BANK OF NINGBO's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, BANK OF NINGBO's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to BANK OF NINGBO.
The idea behind BANK OF NINGBO and DOW pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

DOW

Pair trading matchups for DOW

Solo Brands vs. DOW
BP PLC vs. DOW
Vmware vs. DOW
Context Therapeutics vs. DOW
Sentinelone Inc vs. DOW
Cyclacel Pharmaceuti vs. DOW
MITIE GROUP vs. DOW
Calyxt vs. DOW
Alphabet vs. DOW
Alzamend Neuro vs. DOW
ATT vs. DOW
Liquidia Corp vs. DOW
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against DOW as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. DOW's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, DOW's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to DOW.
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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