Correlation Between Chengdu Xingrong and Ningxia Younglight
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Chengdu Xingrong and Ningxia Younglight 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 Chengdu Xingrong with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Ningxia Younglight.
Diversification Opportunities for Chengdu Xingrong and Ningxia Younglight
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chengdu and Ningxia is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Ningxia Younglight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Younglight has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Ningxia Younglight
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.36 times more return on investment than Ningxia Younglight. However, Chengdu Xingrong Investment is 2.78 times less risky than Ningxia Younglight. It trades about -0.03 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about -0.09 per unit of risk. If you would invest 721.00 in Chengdu Xingrong Investment on October 17, 2024 and sell it today you would lose (9.00) from holding Chengdu Xingrong Investment or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Ningxia Younglight |
Chengdu Xingrong and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Ningxia Younglight
The main advantage of trading using opposite Chengdu Xingrong and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Ningxia Younglight 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 Ningxia Younglight will offset losses from the drop in Ningxia Younglight's long position.| Chengdu Xingrong vs. Changjiang Jinggong Steel | Chengdu Xingrong vs. Hangzhou Guotai Environmental | Chengdu Xingrong vs. Tonghua Grape Wine | Chengdu Xingrong vs. Yindu Kitchen Equipment |
| Ningxia Younglight vs. Chengdu Xingrong Investment | Ningxia Younglight vs. Zhongrun Resources Investment | Ningxia Younglight vs. Hunan Investment Group | Ningxia Younglight vs. Xiandai Investment Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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