Correlation Between Ningxia Younglight and Hengli Industrial
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Hengli Industrial Development, you can compare the effects of market volatilities on Ningxia Younglight and Hengli Industrial 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 Ningxia Younglight with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Hengli Industrial.
Diversification Opportunities for Ningxia Younglight and Hengli Industrial
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ningxia and Hengli is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Ningxia Younglight 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 Ningxia Younglight Chemicals are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Hengli Industrial go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Hengli Industrial
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Hengli Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Ningxia Younglight Chemicals is 1.19 times less risky than Hengli Industrial. The stock trades about -0.04 of its potential returns per unit of risk. The Hengli Industrial Development is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 203.00 in Hengli Industrial Development on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Hengli Industrial Development or generate 13.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Hengli Industrial Development
Performance |
| Timeline |
| Ningxia Younglight |
| Hengli Industrial |
Ningxia Younglight and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Hengli Industrial
The main advantage of trading using opposite Ningxia Younglight and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Ningxia Younglight vs. Chengtun Mining Group | Ningxia Younglight vs. Linktel Technologies Co | Ningxia Younglight vs. Guangdong Jingyi Metal | Ningxia Younglight vs. Zhangjiagang Freetrade Science |
| Hengli Industrial vs. Xiangyang Automobile Bearing | Hengli Industrial vs. Wuhan Yangtze Communication | Hengli Industrial vs. Jilin Jlu Communication | Hengli Industrial vs. Tongyu Communication |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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