Correlation Between Ningxia Younglight and Shengyi Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningxia Younglight Chemicals and Shengyi Technology Co, you can compare the effects of market volatilities on Ningxia Younglight and Shengyi Technology 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 Shengyi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Shengyi Technology.
Diversification Opportunities for Ningxia Younglight and Shengyi Technology
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningxia and Shengyi is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Shengyi Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengyi Technology 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 Shengyi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengyi Technology has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Shengyi Technology go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Shengyi Technology
Assuming the 90 days trading horizon Ningxia Younglight is expected to generate 5.35 times less return on investment than Shengyi Technology. In addition to that, Ningxia Younglight is 1.24 times more volatile than Shengyi Technology Co. It trades about 0.01 of its total potential returns per unit of risk. Shengyi Technology Co is currently generating about 0.04 per unit of volatility. If you would invest 1,477 in Shengyi Technology Co on September 3, 2024 and sell it today you would earn a total of 629.00 from holding Shengyi Technology Co or generate 42.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Shengyi Technology Co
Performance |
| Timeline |
| Ningxia Younglight |
| Shengyi Technology |
Ningxia Younglight and Shengyi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Shengyi Technology
The main advantage of trading using opposite Ningxia Younglight and Shengyi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Shengyi Technology 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 Shengyi Technology will offset losses from the drop in Shengyi Technology's long position.| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Rongsheng Petrochemical Co | Ningxia Younglight vs. Hoshine Silicon Ind |
| Shengyi Technology vs. Easyhome New Retail | Shengyi Technology vs. Yingde Greatchem Chemicals | Shengyi Technology vs. Ningxia Younglight Chemicals | Shengyi Technology vs. Beijing Jiaman Dress |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |