Correlation Between Ningxia Younglight and Henan Shuanghui
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Henan Shuanghui Investment, you can compare the effects of market volatilities on Ningxia Younglight and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Henan Shuanghui.
Diversification Opportunities for Ningxia Younglight and Henan Shuanghui
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ningxia and Henan is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Henan Shuanghui
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Henan Shuanghui. In addition to that, Ningxia Younglight is 3.95 times more volatile than Henan Shuanghui Investment. It trades about -0.12 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.05 per unit of volatility. If you would invest 2,540 in Henan Shuanghui Investment on October 11, 2024 and sell it today you would earn a total of 24.00 from holding Henan Shuanghui Investment or generate 0.94% 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. Henan Shuanghui Investment
Performance |
| Timeline |
| Ningxia Younglight |
| Henan Shuanghui Inve |
Ningxia Younglight and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Henan Shuanghui
The main advantage of trading using opposite Ningxia Younglight and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| Ningxia Younglight vs. Zoje Resources Investment | Ningxia Younglight vs. Shanghai Material Trading | Ningxia Younglight vs. Vanfund Urban Investment | Ningxia Younglight vs. Postal Savings Bank |
| Henan Shuanghui vs. Bank of Suzhou | Henan Shuanghui vs. Peoples Insurance of | Henan Shuanghui vs. Ningxia Younglight Chemicals | Henan Shuanghui vs. Industrial Bank 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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