Correlation Between Ningxia Younglight and Jiangsu GDK
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By analyzing existing cross correlation between Ningxia Younglight Chemicals and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Ningxia Younglight and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Jiangsu GDK.
Diversification Opportunities for Ningxia Younglight and Jiangsu GDK
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningxia and Jiangsu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Jiangsu GDK
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 0.88 times more return on investment than Jiangsu GDK. However, Ningxia Younglight Chemicals is 1.14 times less risky than Jiangsu GDK. It trades about 0.0 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.05 per unit of risk. If you would invest 911.00 in Ningxia Younglight Chemicals on October 13, 2024 and sell it today you would lose (190.00) from holding Ningxia Younglight Chemicals or give up 20.86% 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. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Ningxia Younglight |
| Jiangsu GDK Biotechnology |
Ningxia Younglight and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Younglight and Jiangsu GDK
The main advantage of trading using opposite Ningxia Younglight and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Ningxia Younglight vs. Zhengping RoadBridge Constr | Ningxia Younglight vs. Fujian Longzhou Transportation | Ningxia Younglight vs. Anhui Deli Household | Ningxia Younglight vs. Xinjiang Beixin RoadBridge |
| Jiangsu GDK vs. Ye Chiu Metal | Jiangsu GDK vs. Ningxia Younglight Chemicals | Jiangsu GDK vs. Shandong Sanyuan Biotechnology | Jiangsu GDK vs. Shandong Polymer Biochemicals |
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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