Correlation Between Ningxia Younglight and Xilong Chemical
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Xilong Chemical Co, you can compare the effects of market volatilities on Ningxia Younglight and Xilong 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 Xilong Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Xilong Chemical.
Diversification Opportunities for Ningxia Younglight and Xilong Chemical
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningxia and Xilong is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Xilong Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xilong 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 Xilong Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xilong Chemical has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Xilong Chemical go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Xilong Chemical
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Xilong Chemical. In addition to that, Ningxia Younglight is 1.38 times more volatile than Xilong Chemical Co. It trades about -0.31 of its total potential returns per unit of risk. Xilong Chemical Co is currently generating about 0.02 per unit of volatility. If you would invest 777.00 in Xilong Chemical Co on October 25, 2024 and sell it today you would earn a total of 3.00 from holding Xilong Chemical Co or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Xilong Chemical Co
Performance |
| Timeline |
| Ningxia Younglight |
| Xilong Chemical |
Ningxia Younglight and Xilong Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Xilong Chemical
The main advantage of trading using opposite Ningxia Younglight and Xilong Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Xilong 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 Xilong Chemical will offset losses from the drop in Xilong 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. Rongsheng Petrochemical Co |
| Xilong Chemical vs. Zijin Mining Group | Xilong Chemical vs. Wanhua Chemical Group | Xilong Chemical vs. Baoshan Iron Steel | Xilong Chemical vs. Rongsheng Petrochemical 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 CEOs Directory module to screen CEOs from public companies around the world.
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