Correlation Between Ningbo Ligong and Era
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By analyzing existing cross correlation between Ningbo Ligong Online and Era Co, you can compare the effects of market volatilities on Ningbo Ligong and Era 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 Era. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Era.
Diversification Opportunities for Ningbo Ligong and Era
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Era is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Era Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Era Co 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 Era. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Era Co has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Era go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Era
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to under-perform the Era. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Ligong Online is 1.58 times less risky than Era. The stock trades about -0.11 of its potential returns per unit of risk. The Era Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 457.00 in Era Co on September 14, 2024 and sell it today you would earn a total of 67.00 from holding Era Co or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Era Co
Performance |
| Timeline |
| Ningbo Ligong Online |
| Era Co |
Ningbo Ligong and Era Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Era
The main advantage of trading using opposite Ningbo Ligong and Era positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Era 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 Era will offset losses from the drop in Era'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 |
| Era vs. Ningbo Ligong Online | Era vs. Haima Automobile Group | Era vs. Zoy Home Furnishing | Era vs. Songz Automobile Air |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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