Correlation Between Ningxia Younglight and China Mobile
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and China Mobile Limited, you can compare the effects of market volatilities on Ningxia Younglight and China Mobile 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 China Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and China Mobile.
Diversification Opportunities for Ningxia Younglight and China Mobile
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningxia and China is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and China Mobile Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Mobile Limited 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 China Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Mobile Limited has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and China Mobile go up and down completely randomly.
Pair Corralation between Ningxia Younglight and China Mobile
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 2.27 times more return on investment than China Mobile. However, Ningxia Younglight is 2.27 times more volatile than China Mobile Limited. It trades about -0.04 of its potential returns per unit of risk. China Mobile Limited is currently generating about -0.18 per unit of risk. If you would invest 769.00 in Ningxia Younglight Chemicals on November 3, 2024 and sell it today you would lose (16.00) from holding Ningxia Younglight Chemicals or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. China Mobile Limited
Performance |
| Timeline |
| Ningxia Younglight |
| China Mobile Limited |
Ningxia Younglight and China Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and China Mobile
The main advantage of trading using opposite Ningxia Younglight and China Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, China Mobile 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 China Mobile will offset losses from the drop in China Mobile's long position.| Ningxia Younglight vs. Bingo Software Co | Ningxia Younglight vs. Sihui Fuji Electronics | Ningxia Younglight vs. Jiangyin Jianghua Microelectronics | Ningxia Younglight vs. Xinya Electronic Co |
| China Mobile vs. Heilongjiang Transport Development | China Mobile vs. Wasu Media Holding | China Mobile vs. Southern PublishingMedia Co | China Mobile vs. Silkroad Visual Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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