Correlation Between BANK OF NINGBO and Immunoprecise Antibodies

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Can any of the company-specific risk be diversified away by investing in both BANK OF NINGBO and Immunoprecise Antibodies 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 Immunoprecise Antibodies 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 Immunoprecise Antibodies, you can compare the effects of market volatilities on BANK OF NINGBO and Immunoprecise Antibodies 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 Immunoprecise Antibodies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK OF NINGBO and Immunoprecise Antibodies.

Diversification Opportunities for BANK OF NINGBO and Immunoprecise Antibodies

0.09
  Correlation Coefficient

Significant diversification

The 3 months correlation between 002142 and Immunoprecise is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF NINGBO CO and Immunoprecise Antibodies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunoprecise Antibodies 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 Immunoprecise Antibodies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunoprecise Antibodies has no effect on the direction of BANK OF NINGBO i.e., BANK OF NINGBO and Immunoprecise Antibodies go up and down completely randomly.

Pair Corralation between BANK OF NINGBO and Immunoprecise Antibodies

Assuming the 90 days trading horizon BANK OF NINGBO is expected to generate 0.33 times more return on investment than Immunoprecise Antibodies. However, BANK OF NINGBO is 3.01 times less risky than Immunoprecise Antibodies. It trades about 0.11 of its potential returns per unit of risk. Immunoprecise Antibodies is currently generating about -0.16 per unit of risk. If you would invest  3,242  in BANK OF NINGBO on March 26, 2022 and sell it today you would earn a total of  97.00  from holding BANK OF NINGBO or generate 2.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy80.95%
ValuesDaily Returns

BANK OF NINGBO CO  vs.  Immunoprecise Antibodies

 Performance (%) 
      Timeline 
BANK OF NINGBO 
002142 Performance
0 of 100
Over the last 90 days BANK OF NINGBO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

002142 Price Channel

Immunoprecise Antibodies 
Immunoprecise Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Immunoprecise Antibodies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Immunoprecise Antibodies may actually be approaching a critical reversion point that can send shares even higher in July 2022.

Structure and Payout Changes

Last Split Factor
1:5
Dividend Date
2020-11-23
Last Split Date
2020-11-23

Immunoprecise Price Channel

BANK OF NINGBO and Immunoprecise Antibodies Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with BANK OF NINGBO and Immunoprecise Antibodies

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

BANK OF NINGBO

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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 Immunoprecise Antibodies 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.
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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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