Correlation Between Ningxia Younglight and Maoming Petro
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningxia Younglight Chemicals and Maoming Petro Chemical Shihua, you can compare the effects of market volatilities on Ningxia Younglight and Maoming Petro 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 Maoming Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Maoming Petro.
Diversification Opportunities for Ningxia Younglight and Maoming Petro
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningxia and Maoming is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Maoming Petro Chemical Shihua in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maoming Petro Chemical 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 Maoming Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maoming Petro Chemical has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Maoming Petro go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Maoming Petro
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Maoming Petro. In addition to that, Ningxia Younglight is 1.43 times more volatile than Maoming Petro Chemical Shihua. It trades about -0.02 of its total potential returns per unit of risk. Maoming Petro Chemical Shihua is currently generating about -0.01 per unit of volatility. If you would invest 374.00 in Maoming Petro Chemical Shihua on October 26, 2024 and sell it today you would lose (14.00) from holding Maoming Petro Chemical Shihua or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Maoming Petro Chemical Shihua
Performance |
| Timeline |
| Ningxia Younglight |
| Maoming Petro Chemical |
Ningxia Younglight and Maoming Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Maoming Petro
The main advantage of trading using opposite Ningxia Younglight and Maoming Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Maoming Petro 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 Maoming Petro will offset losses from the drop in Maoming Petro's long position.| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Shandong Gold Mining |
| Maoming Petro vs. Fibocom Wireless | Maoming Petro vs. Jilin Jlu Communication | Maoming Petro vs. Beijing Bewinner Communications | Maoming Petro vs. China Mobile Limited |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |