Correlation Between Ningxia Younglight and Xinhua Winshare
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Ningxia Younglight and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Xinhua Winshare.
Diversification Opportunities for Ningxia Younglight and Xinhua Winshare
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningxia and Xinhua is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Xinhua Winshare
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Xinhua Winshare. In addition to that, Ningxia Younglight is 2.82 times more volatile than Xinhua Winshare Publishing. It trades about -0.09 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.18 per unit of volatility. If you would invest 1,540 in Xinhua Winshare Publishing on October 17, 2024 and sell it today you would lose (95.00) from holding Xinhua Winshare Publishing or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Ningxia Younglight |
| Xinhua Winshare Publ |
Ningxia Younglight and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Xinhua Winshare
The main advantage of trading using opposite Ningxia Younglight and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Ningxia Younglight vs. Chengdu Xingrong Investment | Ningxia Younglight vs. Zhongrun Resources Investment | Ningxia Younglight vs. Hunan Investment Group | Ningxia Younglight vs. Xiandai Investment Co |
| Xinhua Winshare vs. Liaoning Dingjide Petrochemical | Xinhua Winshare vs. Jilin Chemical Fibre | Xinhua Winshare vs. Wuxi Chemical Equipment | Xinhua Winshare 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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