Correlation Between Ningbo Techmation and NLIGHT
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Techmation Co and nLIGHT Inc, you can compare the effects of market volatilities on Ningbo Techmation and NLIGHT 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 Ningbo Techmation with a short position of NLIGHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Techmation and NLIGHT.
Diversification Opportunities for Ningbo Techmation and NLIGHT
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and NLIGHT is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Techmation Co and nLIGHT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nLIGHT Inc and Ningbo Techmation 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 Ningbo Techmation Co are associated (or correlated) with NLIGHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nLIGHT Inc has no effect on the direction of Ningbo Techmation i.e., Ningbo Techmation and NLIGHT go up and down completely randomly.
Pair Corralation between Ningbo Techmation and NLIGHT
Assuming the 90 days trading horizon Ningbo Techmation Co is expected to under-perform the NLIGHT. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Techmation Co is 2.98 times less risky than NLIGHT. The stock trades about -0.05 of its potential returns per unit of risk. The nLIGHT Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,954 in nLIGHT Inc on July 19, 2025 and sell it today you would earn a total of 1,216 from holding nLIGHT Inc or generate 62.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.19% |
| Values | Daily Returns |
Ningbo Techmation Co vs. nLIGHT Inc
Performance |
| Timeline |
| Ningbo Techmation |
| nLIGHT Inc |
Ningbo Techmation and NLIGHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Techmation and NLIGHT
The main advantage of trading using opposite Ningbo Techmation and NLIGHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Techmation position performs unexpectedly, NLIGHT 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 NLIGHT will offset losses from the drop in NLIGHT's long position.| Ningbo Techmation vs. Ming Yang Smart | Ningbo Techmation vs. 159681 | Ningbo Techmation vs. 159005 | Ningbo Techmation 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |