Correlation Between Ningxia Younglight and Cultural Investment
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Cultural Investment Holdings, you can compare the effects of market volatilities on Ningxia Younglight and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Cultural Investment.
Diversification Opportunities for Ningxia Younglight and Cultural Investment
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningxia and Cultural is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Cultural Investment go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Cultural Investment
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Cultural Investment. But the stock apears to be less risky and, when comparing its historical volatility, Ningxia Younglight Chemicals is 1.62 times less risky than Cultural Investment. The stock trades about -0.06 of its potential returns per unit of risk. The Cultural Investment Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 234.00 in Cultural Investment Holdings on September 19, 2024 and sell it today you would earn a total of 0.00 from holding Cultural Investment Holdings or generate 0.0% 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. Cultural Investment Holdings
Performance |
| Timeline |
| Ningxia Younglight |
| Cultural Investment |
Ningxia Younglight and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Cultural Investment
The main advantage of trading using opposite Ningxia Younglight and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment'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 |
| Cultural Investment vs. TianJin 712 Communication | Cultural Investment vs. Lander Sports Development | Cultural Investment vs. Ningxia Younglight Chemicals | Cultural Investment vs. JiShi Media Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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