Correlation Between Ningbo Ligong and Zhejiang Kingland
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By analyzing existing cross correlation between Ningbo Ligong Online and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Ningbo Ligong and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Zhejiang Kingland.
Diversification Opportunities for Ningbo Ligong and Zhejiang Kingland
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ningbo and Zhejiang is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Zhejiang Kingland
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to under-perform the Zhejiang Kingland. In addition to that, Ningbo Ligong is 1.25 times more volatile than Zhejiang Kingland Pipeline. It trades about -0.11 of its total potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about 0.05 per unit of volatility. If you would invest 641.00 in Zhejiang Kingland Pipeline on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Zhejiang Kingland Pipeline or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Ningbo Ligong Online |
| Zhejiang Kingland |
Ningbo Ligong and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Zhejiang Kingland
The main advantage of trading using opposite Ningbo Ligong and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Ningbo Ligong vs. China Petroleum Chemical | Ningbo Ligong vs. PetroChina Co Ltd | Ningbo Ligong vs. China State Construction | Ningbo Ligong vs. China Railway Group |
| Zhejiang Kingland vs. Shanghai Broadband Technology | Zhejiang Kingland vs. Zhengping RoadBridge Constr | Zhejiang Kingland vs. Dazhong Transportation Group | Zhejiang Kingland vs. Tongyu Communication |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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