Correlation Between Zhongshan Public and Ningbo Ligong
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By analyzing existing cross correlation between Zhongshan Public Utilities and Ningbo Ligong Online, you can compare the effects of market volatilities on Zhongshan Public and Ningbo Ligong 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 Zhongshan Public with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Ningbo Ligong.
Diversification Opportunities for Zhongshan Public and Ningbo Ligong
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhongshan and Ningbo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Zhongshan Public and Ningbo Ligong
Assuming the 90 days trading horizon Zhongshan Public is expected to generate 14.38 times less return on investment than Ningbo Ligong. But when comparing it to its historical volatility, Zhongshan Public Utilities is 1.98 times less risky than Ningbo Ligong. It trades about 0.05 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 1,301 in Ningbo Ligong Online on November 27, 2024 and sell it today you would earn a total of 118.00 from holding Ningbo Ligong Online or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Ningbo Ligong Online
Performance |
| Timeline |
| Zhongshan Public Uti |
| Ningbo Ligong Online |
Zhongshan Public and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Ningbo Ligong
The main advantage of trading using opposite Zhongshan Public and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Zhongshan Public vs. Guangzhou Shangpin Home | Zhongshan Public vs. Vohringer Home Technology | Zhongshan Public vs. Chongqing Sulian Plastic | Zhongshan Public vs. Nanya New Material |
| Ningbo Ligong vs. Ningbo Kangqiang Electronics | Ningbo Ligong vs. Jiangxi Naipu Mining | Ningbo Ligong vs. Jinhui Mining Co | Ningbo Ligong vs. Chengtun Mining Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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