Correlation Between Henan Shuanghui and Ningxia Baofeng
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By analyzing existing cross correlation between Henan Shuanghui Investment and Ningxia Baofeng Energy, you can compare the effects of market volatilities on Henan Shuanghui and Ningxia Baofeng 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 Henan Shuanghui with a short position of Ningxia Baofeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Ningxia Baofeng.
Diversification Opportunities for Henan Shuanghui and Ningxia Baofeng
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Henan and Ningxia is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and Ningxia Baofeng Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Baofeng Energy and Henan Shuanghui 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 Henan Shuanghui Investment are associated (or correlated) with Ningxia Baofeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Baofeng Energy has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and Ningxia Baofeng go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Ningxia Baofeng
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.73 times more return on investment than Ningxia Baofeng. However, Henan Shuanghui Investment is 1.36 times less risky than Ningxia Baofeng. It trades about 0.04 of its potential returns per unit of risk. Ningxia Baofeng Energy is currently generating about 0.02 per unit of risk. If you would invest 2,262 in Henan Shuanghui Investment on December 4, 2024 and sell it today you would earn a total of 463.00 from holding Henan Shuanghui Investment or generate 20.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Ningxia Baofeng Energy
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Ningxia Baofeng Energy |
Henan Shuanghui and Ningxia Baofeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Ningxia Baofeng
The main advantage of trading using opposite Henan Shuanghui and Ningxia Baofeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, Ningxia Baofeng 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 Baofeng will offset losses from the drop in Ningxia Baofeng's long position.| Henan Shuanghui vs. Qtone Education Group | Henan Shuanghui vs. Pengxin International Mining | Henan Shuanghui vs. Huaibei Mining Holdings | Henan Shuanghui vs. Guangdong Silvere Sci |
| Ningxia Baofeng vs. Jiujiang Shanshui Technology | Ningxia Baofeng vs. Linewell Software Co | Ningxia Baofeng vs. Longmaster Information Tech | Ningxia Baofeng vs. Olympic Circuit 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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