Correlation Between Ningxia Younglight and Zhonghong Pulin
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Ningxia Younglight and Zhonghong Pulin 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 Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Zhonghong Pulin.
Diversification Opportunities for Ningxia Younglight and Zhonghong Pulin
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningxia and Zhonghong is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical 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 Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Zhonghong Pulin
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 2.06 times more return on investment than Zhonghong Pulin. However, Ningxia Younglight is 2.06 times more volatile than Zhonghong Pulin Medical. It trades about -0.14 of its potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about -0.42 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Zhonghong Pulin Medical
Performance |
| Timeline |
| Ningxia Younglight |
| Zhonghong Pulin Medical |
Ningxia Younglight and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Zhonghong Pulin
The main advantage of trading using opposite Ningxia Younglight and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin'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 |
| Zhonghong Pulin vs. Shengda Mining Co | Zhonghong Pulin vs. Ningxia Younglight Chemicals | Zhonghong Pulin vs. Western Mining Co | Zhonghong Pulin vs. Guangdong Silvere Sci |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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