Correlation Between Ningxia Younglight and National Silicon
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and National Silicon Industry, you can compare the effects of market volatilities on Ningxia Younglight and National Silicon 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 National Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and National Silicon.
Diversification Opportunities for Ningxia Younglight and National Silicon
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningxia and National is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and National Silicon Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Silicon Industry 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 National Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Silicon Industry has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and National Silicon go up and down completely randomly.
Pair Corralation between Ningxia Younglight and National Silicon
Assuming the 90 days trading horizon Ningxia Younglight is expected to generate 1.2 times less return on investment than National Silicon. But when comparing it to its historical volatility, Ningxia Younglight Chemicals is 1.31 times less risky than National Silicon. It trades about 0.12 of its potential returns per unit of risk. National Silicon Industry is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,329 in National Silicon Industry on October 18, 2024 and sell it today you would earn a total of 568.00 from holding National Silicon Industry or generate 42.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. National Silicon Industry
Performance |
| Timeline |
| Ningxia Younglight |
| National Silicon Industry |
Ningxia Younglight and National Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and National Silicon
The main advantage of trading using opposite Ningxia Younglight and National Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, National Silicon 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 National Silicon will offset losses from the drop in National Silicon'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 |
| National Silicon vs. Ningxia Younglight Chemicals | National Silicon vs. Cicc Fund Management | National Silicon vs. Hengli Petrochemical Co | National Silicon vs. AVIC Fund Management |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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