Correlation Between Ningxia Younglight and Shandong Rike
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Shandong Rike Chemical, you can compare the effects of market volatilities on Ningxia Younglight and Shandong Rike 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 Shandong Rike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Shandong Rike.
Diversification Opportunities for Ningxia Younglight and Shandong Rike
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningxia and Shandong is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Shandong Rike Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Rike Chemical 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 Shandong Rike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Rike Chemical has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Shandong Rike go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Shandong Rike
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Shandong Rike. In addition to that, Ningxia Younglight is 1.17 times more volatile than Shandong Rike Chemical. It trades about -0.21 of its total potential returns per unit of risk. Shandong Rike Chemical is currently generating about -0.13 per unit of volatility. If you would invest 648.00 in Shandong Rike Chemical on October 13, 2024 and sell it today you would lose (72.00) from holding Shandong Rike Chemical or give up 11.11% 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. Shandong Rike Chemical
Performance |
| Timeline |
| Ningxia Younglight |
| Shandong Rike Chemical |
Ningxia Younglight and Shandong Rike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Shandong Rike
The main advantage of trading using opposite Ningxia Younglight and Shandong Rike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Shandong Rike 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 Shandong Rike will offset losses from the drop in Shandong Rike's long position.| Ningxia Younglight vs. Zhengping RoadBridge Constr | Ningxia Younglight vs. Fujian Longzhou Transportation | Ningxia Younglight vs. Anhui Deli Household | Ningxia Younglight vs. Xinjiang Beixin RoadBridge |
| Shandong Rike vs. Zijin Mining Group | Shandong Rike vs. Wanhua Chemical Group | Shandong Rike vs. Baoshan Iron Steel | Shandong Rike 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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