Correlation Between Ningxia Younglight and Epoxy Base
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Epoxy Base Electronic, you can compare the effects of market volatilities on Ningxia Younglight and Epoxy Base 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 Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Epoxy Base.
Diversification Opportunities for Ningxia Younglight and Epoxy Base
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningxia and Epoxy is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic 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 Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Epoxy Base go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Epoxy Base
Assuming the 90 days trading horizon Ningxia Younglight is expected to generate 5.05 times less return on investment than Epoxy Base. But when comparing it to its historical volatility, Ningxia Younglight Chemicals is 1.08 times less risky than Epoxy Base. It trades about 0.0 of its potential returns per unit of risk. Epoxy Base Electronic is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 509.00 in Epoxy Base Electronic on October 11, 2024 and sell it today you would lose (1.00) from holding Epoxy Base Electronic or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Epoxy Base Electronic
Performance |
| Timeline |
| Ningxia Younglight |
| Epoxy Base Electronic |
Ningxia Younglight and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Epoxy Base
The main advantage of trading using opposite Ningxia Younglight and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Ningxia Younglight vs. Panda Dairy Corp | Ningxia Younglight vs. Shanghai CEO Environmental | Ningxia Younglight vs. Innovative Medical Management | Ningxia Younglight vs. Sanbo Hospital Management |
| Epoxy Base vs. Beijing Enlight Media | Epoxy Base vs. Shenzhen Noposion Agrochemicals | Epoxy Base vs. Ningxia Younglight Chemicals | Epoxy Base vs. Longxing Chemical Stock |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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