Correlation Between Vats Liquor and Ningbo Thermal
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By analyzing existing cross correlation between Vats Liquor Chain and Ningbo Thermal Power, you can compare the effects of market volatilities on Vats Liquor and Ningbo Thermal 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 Vats Liquor with a short position of Ningbo Thermal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vats Liquor and Ningbo Thermal.
Diversification Opportunities for Vats Liquor and Ningbo Thermal
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vats and Ningbo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Vats Liquor Chain and Ningbo Thermal Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Thermal Power and Vats Liquor 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 Vats Liquor Chain are associated (or correlated) with Ningbo Thermal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Thermal Power has no effect on the direction of Vats Liquor i.e., Vats Liquor and Ningbo Thermal go up and down completely randomly.
Pair Corralation between Vats Liquor and Ningbo Thermal
Assuming the 90 days trading horizon Vats Liquor Chain is expected to generate 3.24 times more return on investment than Ningbo Thermal. However, Vats Liquor is 3.24 times more volatile than Ningbo Thermal Power. It trades about 0.02 of its potential returns per unit of risk. Ningbo Thermal Power is currently generating about -0.04 per unit of risk. If you would invest 1,836 in Vats Liquor Chain on July 20, 2025 and sell it today you would earn a total of 24.00 from holding Vats Liquor Chain or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vats Liquor Chain vs. Ningbo Thermal Power
Performance |
| Timeline |
| Vats Liquor Chain |
| Ningbo Thermal Power |
Vats Liquor and Ningbo Thermal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vats Liquor and Ningbo Thermal
The main advantage of trading using opposite Vats Liquor and Ningbo Thermal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vats Liquor position performs unexpectedly, Ningbo Thermal 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 Thermal will offset losses from the drop in Ningbo Thermal's long position.| Vats Liquor vs. INKON Life Technology | Vats Liquor vs. Kuang Chi Technologies | Vats Liquor vs. Beijing Baolande Software | Vats Liquor vs. Sharetronic Data Technology |
| Ningbo Thermal vs. Ming Yang Smart | Ningbo Thermal vs. 159681 | Ningbo Thermal vs. 159005 | Ningbo Thermal vs. Loctek Ergonomic Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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