Correlation Between Noble Plc and China Ming
Can any of the company-specific risk be diversified away by investing in both Noble Plc and China Ming 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 Noble Plc and China Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Noble plc and China Ming Yang, you can compare the effects of market volatilities on Noble Plc and China Ming 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 Noble Plc with a short position of China Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Noble Plc and China Ming.
Diversification Opportunities for Noble Plc and China Ming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Noble and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Noble plc and China Ming Yang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Ming Yang and Noble Plc 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 Noble plc are associated (or correlated) with China Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Ming Yang has no effect on the direction of Noble Plc i.e., Noble Plc and China Ming go up and down completely randomly.
Pair Corralation between Noble Plc and China Ming
If you would invest 4,327 in Noble plc on January 19, 2024 and sell it today you would earn a total of 294.00 from holding Noble plc or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Noble plc vs. China Ming Yang
Performance |
| Timeline |
| Noble plc |
| China Ming Yang |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Noble Plc and China Ming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Noble Plc and China Ming
The main advantage of trading using opposite Noble Plc and China Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Noble Plc position performs unexpectedly, China Ming 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 China Ming will offset losses from the drop in China Ming's long position.| Noble Plc vs. Seadrill Limited | Noble Plc vs. Borr Drilling | Noble Plc vs. Patterson UTI Energy | Noble Plc vs. Transocean |
| China Ming vs. CVR Partners LP | China Ming vs. National Beverage Corp | China Ming vs. Lifevantage | China Ming vs. AMCON Distributing |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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