Correlation Between Ningxia Younglight and Beijing Bashi
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Beijing Bashi Media, you can compare the effects of market volatilities on Ningxia Younglight and Beijing Bashi 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 Beijing Bashi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Beijing Bashi.
Diversification Opportunities for Ningxia Younglight and Beijing Bashi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningxia and Beijing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Beijing Bashi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bashi Media 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 Beijing Bashi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bashi Media has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Beijing Bashi go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Beijing Bashi
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Beijing Bashi. But the stock apears to be less risky and, when comparing its historical volatility, Ningxia Younglight Chemicals is 1.01 times less risky than Beijing Bashi. The stock trades about -0.13 of its potential returns per unit of risk. The Beijing Bashi Media is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 420.00 in Beijing Bashi Media on September 4, 2024 and sell it today you would earn a total of 127.00 from holding Beijing Bashi Media or generate 30.24% 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. Beijing Bashi Media
Performance |
| Timeline |
| Ningxia Younglight |
| Beijing Bashi Media |
Ningxia Younglight and Beijing Bashi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Beijing Bashi
The main advantage of trading using opposite Ningxia Younglight and Beijing Bashi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Beijing Bashi 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 Beijing Bashi will offset losses from the drop in Beijing Bashi's long position.| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Shandong Gold Mining |
| Beijing Bashi vs. Shanghai Rendu Biotechnology | Beijing Bashi vs. Suzhou Douson Drilling | Beijing Bashi vs. Anhui Gujing Distillery | Beijing Bashi vs. Ningxia Younglight Chemicals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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