Correlation Between Ningxia Younglight and Shanghai Yaoji
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Ningxia Younglight and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Shanghai Yaoji.
Diversification Opportunities for Ningxia Younglight and Shanghai Yaoji
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningxia and Shanghai is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Shanghai Yaoji
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Shanghai Yaoji. But the stock apears to be less risky and, when comparing its historical volatility, Ningxia Younglight Chemicals is 1.69 times less risky than Shanghai Yaoji. The stock trades about -0.04 of its potential returns per unit of risk. The Shanghai Yaoji Playing is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,628 in Shanghai Yaoji Playing on November 3, 2024 and sell it today you would earn a total of 169.00 from holding Shanghai Yaoji Playing or generate 6.43% 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. Shanghai Yaoji Playing
Performance |
| Timeline |
| Ningxia Younglight |
| Shanghai Yaoji Playing |
Ningxia Younglight and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Shanghai Yaoji
The main advantage of trading using opposite Ningxia Younglight and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Ningxia Younglight vs. Chengtun Mining Group | Ningxia Younglight vs. Linktel Technologies Co | Ningxia Younglight vs. Guangdong Jingyi Metal | Ningxia Younglight vs. Zhangjiagang Freetrade Science |
| Shanghai Yaoji vs. Eastern Communications Co | Shanghai Yaoji vs. Bomesc Offshore Engineering | Shanghai Yaoji vs. Runjian Communication Co | Shanghai Yaoji vs. Huizhou Speed Wireless |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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