Correlation Between LianChuang Electronic and Ningxia Building
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By analyzing existing cross correlation between LianChuang Electronic Technology and Ningxia Building Materials, you can compare the effects of market volatilities on LianChuang Electronic and Ningxia Building 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 LianChuang Electronic with a short position of Ningxia Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of LianChuang Electronic and Ningxia Building.
Diversification Opportunities for LianChuang Electronic and Ningxia Building
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LianChuang and Ningxia is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding LianChuang Electronic Technolo and Ningxia Building Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Building Mat and LianChuang Electronic 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 LianChuang Electronic Technology are associated (or correlated) with Ningxia Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Building Mat has no effect on the direction of LianChuang Electronic i.e., LianChuang Electronic and Ningxia Building go up and down completely randomly.
Pair Corralation between LianChuang Electronic and Ningxia Building
Assuming the 90 days trading horizon LianChuang Electronic Technology is expected to generate 1.22 times more return on investment than Ningxia Building. However, LianChuang Electronic is 1.22 times more volatile than Ningxia Building Materials. It trades about -0.05 of its potential returns per unit of risk. Ningxia Building Materials is currently generating about -0.08 per unit of risk. If you would invest 967.00 in LianChuang Electronic Technology on October 30, 2024 and sell it today you would lose (83.00) from holding LianChuang Electronic Technology or give up 8.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LianChuang Electronic Technolo vs. Ningxia Building Materials
Performance |
| Timeline |
| LianChuang Electronic |
| Ningxia Building Mat |
LianChuang Electronic and Ningxia Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LianChuang Electronic and Ningxia Building
The main advantage of trading using opposite LianChuang Electronic and Ningxia Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LianChuang Electronic position performs unexpectedly, Ningxia Building 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 Building will offset losses from the drop in Ningxia Building's long position.| LianChuang Electronic vs. Qijing Machinery | LianChuang Electronic vs. Huaibei Mining Holdings | LianChuang Electronic vs. Tjk Machinery Tianjin | LianChuang Electronic vs. Masterwork Machinery |
| Ningxia Building vs. Zijin Mining Group | Ningxia Building vs. Wanhua Chemical Group | Ningxia Building vs. Baoshan Iron Steel | Ningxia Building 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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