Correlation Between Gansu Huangtai and Ningxia Baofeng
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Ningxia Baofeng Energy, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of Ningxia Baofeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Ningxia Baofeng.
Diversification Opportunities for Gansu Huangtai and Ningxia Baofeng
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gansu and Ningxia is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing 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 Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Gansu Huangtai i.e., Gansu Huangtai and Ningxia Baofeng go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Ningxia Baofeng
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to under-perform the Ningxia Baofeng. In addition to that, Gansu Huangtai is 2.16 times more volatile than Ningxia Baofeng Energy. It trades about -0.12 of its total potential returns per unit of risk. Ningxia Baofeng Energy is currently generating about 0.16 per unit of volatility. If you would invest 1,654 in Ningxia Baofeng Energy on November 3, 2024 and sell it today you would earn a total of 99.00 from holding Ningxia Baofeng Energy or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Ningxia Baofeng Energy
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Ningxia Baofeng Energy |
Gansu Huangtai and Ningxia Baofeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Ningxia Baofeng
The main advantage of trading using opposite Gansu Huangtai and Ningxia Baofeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Harbin Air Conditioning | Gansu Huangtai vs. Dr Peng Telecom | Gansu Huangtai vs. Vats Liquor Chain | Gansu Huangtai vs. China Sports Industry |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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