Correlation Between Ningxia Younglight and Tianjin LVYIN
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Tianjin LVYIN Landscape, you can compare the effects of market volatilities on Ningxia Younglight and Tianjin LVYIN 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 Tianjin LVYIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Tianjin LVYIN.
Diversification Opportunities for Ningxia Younglight and Tianjin LVYIN
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningxia and Tianjin is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Tianjin LVYIN Landscape in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin LVYIN Landscape 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 Tianjin LVYIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin LVYIN Landscape has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Tianjin LVYIN go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Tianjin LVYIN
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 1.48 times more return on investment than Tianjin LVYIN. However, Ningxia Younglight is 1.48 times more volatile than Tianjin LVYIN Landscape. It trades about -0.18 of its potential returns per unit of risk. Tianjin LVYIN Landscape is currently generating about -0.53 per unit of risk. If you would invest 860.00 in Ningxia Younglight Chemicals on October 15, 2024 and sell it today you would lose (139.00) from holding Ningxia Younglight Chemicals or give up 16.16% 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. Tianjin LVYIN Landscape
Performance |
| Timeline |
| Ningxia Younglight |
| Tianjin LVYIN Landscape |
Ningxia Younglight and Tianjin LVYIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Tianjin LVYIN
The main advantage of trading using opposite Ningxia Younglight and Tianjin LVYIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Tianjin LVYIN 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 Tianjin LVYIN will offset losses from the drop in Tianjin LVYIN's long position.| Ningxia Younglight vs. Chengdu Spaceon Electronics | Ningxia Younglight vs. China Asset Management | Ningxia Younglight vs. Kingclean Electric Co | Ningxia Younglight vs. Huaxia Fund Management |
| Tianjin LVYIN vs. Shandong Rike Chemical | Tianjin LVYIN vs. Longxing Chemical Stock | Tianjin LVYIN vs. Shenzhen Noposion Agrochemicals | Tianjin LVYIN vs. Ningxia Younglight Chemicals |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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