Correlation Between Ningxia Younglight and Wonders Information
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Wonders Information, you can compare the effects of market volatilities on Ningxia Younglight and Wonders 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 Wonders Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Wonders Information.
Diversification Opportunities for Ningxia Younglight and Wonders Information
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningxia and Wonders is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Wonders Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonders Information 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 Wonders Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonders Information has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Wonders Information go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Wonders Information
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 1.25 times more return on investment than Wonders Information. However, Ningxia Younglight is 1.25 times more volatile than Wonders Information. It trades about -0.14 of its potential returns per unit of risk. Wonders Information is currently generating about -0.36 per unit of risk. If you would invest 868.00 in Ningxia Younglight Chemicals on October 12, 2024 and sell it today you would lose (116.00) from holding Ningxia Younglight Chemicals or give up 13.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Wonders Information
Performance |
| Timeline |
| Ningxia Younglight |
| Wonders Information |
Ningxia Younglight and Wonders Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Wonders Information
The main advantage of trading using opposite Ningxia Younglight and Wonders Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Wonders 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 Wonders Information will offset losses from the drop in Wonders Information'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 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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