Correlation Between Ningxia Younglight and G Bits
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and G bits Network Technology, you can compare the effects of market volatilities on Ningxia Younglight and G Bits 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 G Bits. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and G Bits.
Diversification Opportunities for Ningxia Younglight and G Bits
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningxia and 603444 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and G bits Network Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G bits Network 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 G Bits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G bits Network has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and G Bits go up and down completely randomly.
Pair Corralation between Ningxia Younglight and G Bits
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 1.51 times more return on investment than G Bits. However, Ningxia Younglight is 1.51 times more volatile than G bits Network Technology. It trades about -0.08 of its potential returns per unit of risk. G bits Network Technology is currently generating about -0.31 per unit of risk. If you would invest 787.00 in Ningxia Younglight Chemicals on October 30, 2024 and sell it today you would lose (34.00) from holding Ningxia Younglight Chemicals or give up 4.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. G bits Network Technology
Performance |
| Timeline |
| Ningxia Younglight |
| G bits Network |
Ningxia Younglight and G Bits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and G Bits
The main advantage of trading using opposite Ningxia Younglight and G Bits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, G Bits 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 G Bits will offset losses from the drop in G Bits' 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 |
| G Bits vs. Nanjing Putian Telecommunications | G Bits vs. HeNan Splendor Science | G Bits vs. Panda Financial Holding | G Bits vs. Ningbo Fangzheng Automobile |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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