Correlation Between Ningbo Ligong and Zhongrun Resources
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By analyzing existing cross correlation between Ningbo Ligong Online and Zhongrun Resources Investment, you can compare the effects of market volatilities on Ningbo Ligong and Zhongrun Resources 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 Ningbo Ligong with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Zhongrun Resources.
Diversification Opportunities for Ningbo Ligong and Zhongrun Resources
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Zhongrun is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Ningbo Ligong 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 Ningbo Ligong Online are associated (or correlated) with Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Zhongrun Resources
Assuming the 90 days trading horizon Ningbo Ligong is expected to generate 1.21 times less return on investment than Zhongrun Resources. But when comparing it to its historical volatility, Ningbo Ligong Online is 1.68 times less risky than Zhongrun Resources. It trades about 0.04 of its potential returns per unit of risk. Zhongrun Resources Investment is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 459.00 in Zhongrun Resources Investment on December 4, 2024 and sell it today you would earn a total of 79.00 from holding Zhongrun Resources Investment or generate 17.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Ningbo Ligong Online |
| Zhongrun Resources |
Ningbo Ligong and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Zhongrun Resources
The main advantage of trading using opposite Ningbo Ligong and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' long position.| Ningbo Ligong vs. Olympic Circuit Technology | Ningbo Ligong vs. AnShan Heavy Duty | Ningbo Ligong vs. Hubei Huaqiang High Tech | Ningbo Ligong vs. INKON Life Technology |
| Zhongrun Resources vs. Tibet Huayu Mining | Zhongrun Resources vs. Shenzhen AV Display Co | Zhongrun Resources vs. Qingdao Choho Industrial | Zhongrun Resources vs. Yoantion Industrial IncLtd |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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