Correlation Between Ningbo Ligong and Chengdu Spaceon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Ligong Online and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Ningbo Ligong and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Chengdu Spaceon.
Diversification Opportunities for Ningbo Ligong and Chengdu Spaceon
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Chengdu is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Chengdu Spaceon
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 0.92 times more return on investment than Chengdu Spaceon. However, Ningbo Ligong Online is 1.09 times less risky than Chengdu Spaceon. It trades about 0.05 of its potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.01 per unit of risk. If you would invest 846.00 in Ningbo Ligong Online on September 3, 2024 and sell it today you would earn a total of 474.00 from holding Ningbo Ligong Online or generate 56.03% 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. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Ningbo Ligong Online |
| Chengdu Spaceon Elec |
Ningbo Ligong and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Chengdu Spaceon
The main advantage of trading using opposite Ningbo Ligong and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon's long position.| Ningbo Ligong vs. Cultural Investment Holdings | Ningbo Ligong vs. Gome Telecom Equipment | Ningbo Ligong vs. Bus Online Co | Ningbo Ligong vs. Holitech Technology Co |
| Chengdu Spaceon vs. Agricultural Bank of | Chengdu Spaceon vs. China Construction Bank | Chengdu Spaceon vs. Postal Savings Bank | Chengdu Spaceon vs. Bank of Communications |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |