Correlation Between Ningxia Younglight and Lianhe Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningxia Younglight Chemicals and Lianhe Chemical Technology, you can compare the effects of market volatilities on Ningxia Younglight and Lianhe Chemical 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 Lianhe Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Lianhe Chemical.
Diversification Opportunities for Ningxia Younglight and Lianhe Chemical
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningxia and Lianhe is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Lianhe Chemical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lianhe Chemical Tech 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 Lianhe Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lianhe Chemical Tech has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Lianhe Chemical go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Lianhe Chemical
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Lianhe Chemical. In addition to that, Ningxia Younglight is 1.53 times more volatile than Lianhe Chemical Technology. It trades about -0.02 of its total potential returns per unit of risk. Lianhe Chemical Technology is currently generating about -0.01 per unit of volatility. If you would invest 600.00 in Lianhe Chemical Technology on October 26, 2024 and sell it today you would lose (15.00) from holding Lianhe Chemical Technology or give up 2.5% 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. Lianhe Chemical Technology
Performance |
| Timeline |
| Ningxia Younglight |
| Lianhe Chemical Tech |
Ningxia Younglight and Lianhe Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Lianhe Chemical
The main advantage of trading using opposite Ningxia Younglight and Lianhe Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Lianhe Chemical 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 Lianhe Chemical will offset losses from the drop in Lianhe Chemical'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 |
| Lianhe Chemical vs. Everdisplay Optronics Shanghai | Lianhe Chemical vs. XinJiang GuoTong Pipeline | Lianhe Chemical vs. China Sports Industry | Lianhe Chemical vs. Everjoy Health Group |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |