Correlation Between Ningxia Younglight and Longxing Chemical
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Longxing Chemical Stock, you can compare the effects of market volatilities on Ningxia Younglight and Longxing 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Longxing Chemical.
Diversification Opportunities for Ningxia Younglight and Longxing Chemical
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningxia and Longxing is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Longxing Chemical go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Longxing Chemical
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Longxing Chemical. In addition to that, Ningxia Younglight is 1.23 times more volatile than Longxing Chemical Stock. It trades about 0.0 of its total potential returns per unit of risk. Longxing Chemical Stock is currently generating about 0.02 per unit of volatility. If you would invest 543.00 in Longxing Chemical Stock on October 27, 2024 and sell it today you would earn a total of 16.00 from holding Longxing Chemical Stock or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Longxing Chemical Stock
Performance |
| Timeline |
| Ningxia Younglight |
| Longxing Chemical Stock |
Ningxia Younglight and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Longxing Chemical
The main advantage of trading using opposite Ningxia Younglight and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Longxing 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Ningxia Younglight vs. Guangdong Qunxing Toys | Ningxia Younglight vs. Jiaozuo Wanfang Aluminum | Ningxia Younglight vs. Beingmate Baby Child | Ningxia Younglight vs. Shenzhen Zqgame |
| Longxing Chemical vs. Guangzhou Tinci Materials | Longxing Chemical vs. Weihai Honglin Electronic | Longxing Chemical vs. Chongqing Sulian Plastic | Longxing Chemical vs. Fuzhou Rockchip Electronics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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