Correlation Between Ningxia Younglight and AVCON Information
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and AVCON Information Tech, you can compare the effects of market volatilities on Ningxia Younglight and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and AVCON Information.
Diversification Opportunities for Ningxia Younglight and AVCON Information
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningxia and AVCON is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and AVCON Information go up and down completely randomly.
Pair Corralation between Ningxia Younglight and AVCON Information
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the AVCON Information. But the stock apears to be less risky and, when comparing its historical volatility, Ningxia Younglight Chemicals is 1.4 times less risky than AVCON Information. The stock trades about -0.35 of its potential returns per unit of risk. The AVCON Information Tech is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 490.00 in AVCON Information Tech on September 12, 2024 and sell it today you would earn a total of 0.00 from holding AVCON Information Tech or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. AVCON Information Tech
Performance |
| Timeline |
| Ningxia Younglight |
| AVCON Information Tech |
Ningxia Younglight and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and AVCON Information
The main advantage of trading using opposite Ningxia Younglight and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information'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 |
| AVCON Information vs. Gansu Jiu Steel | AVCON Information vs. Shandong Mining Machinery | AVCON Information vs. Aba Chemicals Corp | AVCON Information vs. BlueFocus Communication Group |
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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