Correlation Between Ningbo Ligong and Changchun High
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By analyzing existing cross correlation between Ningbo Ligong Online and Changchun High New, you can compare the effects of market volatilities on Ningbo Ligong and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Changchun High.
Diversification Opportunities for Ningbo Ligong and Changchun High
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ningbo and Changchun is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Changchun High go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Changchun High
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 1.09 times more return on investment than Changchun High. However, Ningbo Ligong is 1.09 times more volatile than Changchun High New. It trades about 0.04 of its potential returns per unit of risk. Changchun High New is currently generating about -0.05 per unit of risk. If you would invest 978.00 in Ningbo Ligong Online on August 27, 2024 and sell it today you would earn a total of 353.00 from holding Ningbo Ligong Online or generate 36.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Changchun High New
Performance |
| Timeline |
| Ningbo Ligong Online |
| Changchun High New |
Ningbo Ligong and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Changchun High
The main advantage of trading using opposite Ningbo Ligong and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Ningbo Ligong vs. Keli Sensing Technology | Ningbo Ligong vs. Heilongjiang Transport Development | Ningbo Ligong vs. Jinhe Biotechnology Co | Ningbo Ligong vs. Kangping Technology Co |
| Changchun High vs. Hengkang Medical Group | Changchun High vs. GKHT Medical Technology | Changchun High vs. Sunwave Communications Co | Changchun High vs. Ningbo Ligong Online |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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