Correlation Between Ningbo Ligong and Anhui Huilong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Ligong Online and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Ningbo Ligong and Anhui Huilong 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 Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Anhui Huilong.
Diversification Opportunities for Ningbo Ligong and Anhui Huilong
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Anhui is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu 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 Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Anhui Huilong go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Anhui Huilong
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to under-perform the Anhui Huilong. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Ligong Online is 2.12 times less risky than Anhui Huilong. The stock trades about -0.12 of its potential returns per unit of risk. The Anhui Huilong Agricultural is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 519.00 in Anhui Huilong Agricultural on September 13, 2024 and sell it today you would earn a total of 119.00 from holding Anhui Huilong Agricultural or generate 22.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Ningbo Ligong Online |
| Anhui Huilong Agricu |
Ningbo Ligong and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Anhui Huilong
The main advantage of trading using opposite Ningbo Ligong and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong'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 |
| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |