Correlation Between Ningxia Younglight and Changchun BCHT
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Ningxia Younglight and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Changchun BCHT.
Diversification Opportunities for Ningxia Younglight and Changchun BCHT
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningxia and Changchun is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Changchun BCHT go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Changchun BCHT
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 1.11 times more return on investment than Changchun BCHT. However, Ningxia Younglight is 1.11 times more volatile than Changchun BCHT Biotechnology. It trades about 0.06 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.11 per unit of risk. If you would invest 518.00 in Ningxia Younglight Chemicals on November 3, 2024 and sell it today you would earn a total of 235.00 from holding Ningxia Younglight Chemicals or generate 45.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Younglight Chemicals vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Ningxia Younglight |
| Changchun BCHT Biote |
Ningxia Younglight and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Changchun BCHT
The main advantage of trading using opposite Ningxia Younglight and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| Ningxia Younglight vs. Chengtun Mining Group | Ningxia Younglight vs. Linktel Technologies Co | Ningxia Younglight vs. Guangdong Jingyi Metal | Ningxia Younglight vs. Zhangjiagang Freetrade Science |
| Changchun BCHT vs. Dhc Software Co | Changchun BCHT vs. Heilongjiang Transport Development | Changchun BCHT vs. Sinofibers Technology Co | Changchun BCHT vs. Hubei Forbon Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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