Correlation Between Ningxia Younglight and Luolai Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningxia Younglight Chemicals and Luolai Home Textile, you can compare the effects of market volatilities on Ningxia Younglight and Luolai Home 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 Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Luolai Home.
Diversification Opportunities for Ningxia Younglight and Luolai Home
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningxia and Luolai is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile 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 Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Luolai Home go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Luolai Home
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 2.41 times more return on investment than Luolai Home. However, Ningxia Younglight is 2.41 times more volatile than Luolai Home Textile. It trades about 0.18 of its potential returns per unit of risk. Luolai Home Textile is currently generating about 0.11 per unit of risk. If you would invest 700.00 in Ningxia Younglight Chemicals on August 25, 2024 and sell it today you would earn a total of 132.00 from holding Ningxia Younglight Chemicals or generate 18.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Luolai Home Textile
Performance |
| Timeline |
| Ningxia Younglight |
| Luolai Home Textile |
Ningxia Younglight and Luolai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Luolai Home
The main advantage of trading using opposite Ningxia Younglight and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Luolai Home 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 Luolai Home will offset losses from the drop in Luolai Home'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 |
| Luolai Home vs. Cangzhou Mingzhu Plastic | Luolai Home vs. Xinke Material | Luolai Home vs. Ningxia Younglight Chemicals | Luolai Home vs. GRIPM Advanced Materials |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |