Correlation Between Tieling Newcity and Ningxia Younglight
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By analyzing existing cross correlation between Tieling Newcity Investment and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Tieling Newcity and Ningxia Younglight 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 Tieling Newcity with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and Ningxia Younglight.
Diversification Opportunities for Tieling Newcity and Ningxia Younglight
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tieling and Ningxia is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight and Tieling Newcity 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 Tieling Newcity Investment are associated (or correlated) with Ningxia Younglight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Younglight has no effect on the direction of Tieling Newcity i.e., Tieling Newcity and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Tieling Newcity and Ningxia Younglight
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 1.14 times more return on investment than Ningxia Younglight. However, Tieling Newcity is 1.14 times more volatile than Ningxia Younglight Chemicals. It trades about 0.06 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about -0.08 per unit of risk. If you would invest 301.00 in Tieling Newcity Investment on October 30, 2024 and sell it today you would earn a total of 7.00 from holding Tieling Newcity Investment or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Tieling Newcity Inve |
| Ningxia Younglight |
Tieling Newcity and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and Ningxia Younglight
The main advantage of trading using opposite Tieling Newcity and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity position performs unexpectedly, Ningxia Younglight 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 Ningxia Younglight will offset losses from the drop in Ningxia Younglight's long position.| Tieling Newcity vs. Industrial and Commercial | Tieling Newcity vs. China Construction Bank | Tieling Newcity vs. Bank of China | Tieling Newcity vs. Agricultural Bank of |
| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Shandong Gold Mining |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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