Correlation Between Zoje Resources and Ningxia Younglight
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By analyzing existing cross correlation between Zoje Resources Investment and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Zoje Resources 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 Zoje Resources with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Ningxia Younglight.
Diversification Opportunities for Zoje Resources and Ningxia Younglight
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zoje and Ningxia is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources 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 Zoje Resources 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 Zoje Resources 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 Zoje Resources i.e., Zoje Resources and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Zoje Resources and Ningxia Younglight
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.14 times more return on investment than Ningxia Younglight. However, Zoje Resources is 1.14 times more volatile than Ningxia Younglight Chemicals. It trades about 0.07 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about 0.0 per unit of risk. If you would invest 115.00 in Zoje Resources Investment on October 11, 2024 and sell it today you would earn a total of 149.00 from holding Zoje Resources Investment or generate 129.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Zoje Resources Investment |
| Ningxia Younglight |
Zoje Resources and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Ningxia Younglight
The main advantage of trading using opposite Zoje Resources and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources 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.| Zoje Resources vs. Jinsanjiang Silicon Material | Zoje Resources vs. HeBei Jinniu Chemical | Zoje Resources vs. Wuxi Chemical Equipment | Zoje Resources vs. GigaDevice SemiconductorBeiji |
| Ningxia Younglight vs. Zoje Resources Investment | Ningxia Younglight vs. Shanghai Material Trading | Ningxia Younglight vs. Vanfund Urban Investment | Ningxia Younglight vs. Postal Savings Bank |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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