Correlation Between Ningxia Younglight and Guilin Seamild
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Guilin Seamild Foods, you can compare the effects of market volatilities on Ningxia Younglight and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Guilin Seamild.
Diversification Opportunities for Ningxia Younglight and Guilin Seamild
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningxia and Guilin is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Guilin Seamild go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Guilin Seamild
Assuming the 90 days trading horizon Ningxia Younglight is expected to generate 1.48 times less return on investment than Guilin Seamild. In addition to that, Ningxia Younglight is 1.09 times more volatile than Guilin Seamild Foods. It trades about 0.04 of its total potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.06 per unit of volatility. If you would invest 1,263 in Guilin Seamild Foods on October 12, 2024 and sell it today you would earn a total of 333.00 from holding Guilin Seamild Foods or generate 26.37% 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. Guilin Seamild Foods
Performance |
| Timeline |
| Ningxia Younglight |
| Guilin Seamild Foods |
Ningxia Younglight and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Guilin Seamild
The main advantage of trading using opposite Ningxia Younglight and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| Ningxia Younglight vs. Zoje Resources Investment | Ningxia Younglight vs. Shanghai Material Trading | Ningxia Younglight vs. Vanfund Urban Investment | Ningxia Younglight vs. Postal Savings Bank |
| Guilin Seamild vs. Beijing Kingsoft Office | Guilin Seamild vs. Fibocom Wireless | Guilin Seamild vs. Ningbo MedicalSystem Biotechnology | Guilin Seamild vs. Guangdong Marubi Biotechnology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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