Correlation Between Ningxia Younglight and Shanghai AtHub
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Shanghai AtHub Co, you can compare the effects of market volatilities on Ningxia Younglight and Shanghai AtHub 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 Shanghai AtHub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Shanghai AtHub.
Diversification Opportunities for Ningxia Younglight and Shanghai AtHub
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningxia and Shanghai is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Shanghai AtHub Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai AtHub 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 Shanghai AtHub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai AtHub has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Shanghai AtHub go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Shanghai AtHub
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to under-perform the Shanghai AtHub. In addition to that, Ningxia Younglight is 1.66 times more volatile than Shanghai AtHub Co. It trades about 0.0 of its total potential returns per unit of risk. Shanghai AtHub Co is currently generating about 0.32 per unit of volatility. If you would invest 1,651 in Shanghai AtHub Co on September 28, 2024 and sell it today you would earn a total of 308.00 from holding Shanghai AtHub Co or generate 18.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Shanghai AtHub Co
Performance |
| Timeline |
| Ningxia Younglight |
| Shanghai AtHub |
Ningxia Younglight and Shanghai AtHub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Shanghai AtHub
The main advantage of trading using opposite Ningxia Younglight and Shanghai AtHub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Shanghai AtHub 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 Shanghai AtHub will offset losses from the drop in Shanghai AtHub's long position.| Ningxia Younglight vs. Beijing Sanyuan Foods | Ningxia Younglight vs. Shanghai Ziyan Foods | Ningxia Younglight vs. Dongguan Aohai Technology | Ningxia Younglight vs. Holitech Technology Co |
| Shanghai AtHub vs. Industrial and Commercial | Shanghai AtHub vs. Agricultural Bank of | Shanghai AtHub vs. China Construction Bank | Shanghai AtHub vs. Bank of China |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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