Correlation Between Ningxia Younglight and Chongqing Shunbo
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on Ningxia Younglight and Chongqing Shunbo 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 Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Chongqing Shunbo.
Diversification Opportunities for Ningxia Younglight and Chongqing Shunbo
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningxia and Chongqing is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum 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 Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Chongqing Shunbo
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 1.28 times more return on investment than Chongqing Shunbo. However, Ningxia Younglight is 1.28 times more volatile than Chongqing Shunbo Aluminum. It trades about 0.0 of its potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about -0.03 per unit of risk. If you would invest 959.00 in Ningxia Younglight Chemicals on October 27, 2024 and sell it today you would lose (210.00) from holding Ningxia Younglight Chemicals or give up 21.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| Ningxia Younglight |
| Chongqing Shunbo Aluminum |
Ningxia Younglight and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Chongqing Shunbo
The main advantage of trading using opposite Ningxia Younglight and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Chongqing Shunbo 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 Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo'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 |
| Chongqing Shunbo vs. Zijin Mining Group | Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Baoshan Iron Steel | Chongqing Shunbo vs. Shandong Gold Mining |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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