Correlation Between Ningbo Ligong and Shenyang Huitian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Ligong Online and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Ningbo Ligong and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Shenyang Huitian.
Diversification Opportunities for Ningbo Ligong and Shenyang Huitian
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Shenyang is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Shenyang Huitian
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 1.33 times more return on investment than Shenyang Huitian. However, Ningbo Ligong is 1.33 times more volatile than Shenyang Huitian Thermal. It trades about 0.0 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about -0.14 per unit of risk. If you would invest 1,300 in Ningbo Ligong Online on October 28, 2024 and sell it today you would lose (9.00) from holding Ningbo Ligong Online or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Ningbo Ligong Online |
| Shenyang Huitian Thermal |
Ningbo Ligong and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Shenyang Huitian
The main advantage of trading using opposite Ningbo Ligong and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Ningbo Ligong vs. Eyebright Medical Technology | Ningbo Ligong vs. Guangdong Transtek Medical | Ningbo Ligong vs. Lander Sports Development | Ningbo Ligong vs. Shandong Intco Medical |
| Shenyang Huitian vs. Meinian Onehealth Healthcare | Shenyang Huitian vs. Everjoy Health Group | Shenyang Huitian vs. Dezhan HealthCare Co | Shenyang Huitian vs. Shantui Construction Machinery |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Correlations Find global opportunities by holding instruments from different markets |