Correlation Between Ningbo Ligong and Ningbo GQY
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By analyzing existing cross correlation between Ningbo Ligong Online and Ningbo GQY Video, you can compare the effects of market volatilities on Ningbo Ligong and Ningbo GQY 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 Ningbo GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Ningbo GQY.
Diversification Opportunities for Ningbo Ligong and Ningbo GQY
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Ningbo is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Ningbo GQY Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo GQY Video 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 Ningbo GQY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo GQY Video has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Ningbo GQY go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Ningbo GQY
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to under-perform the Ningbo GQY. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Ligong Online is 2.92 times less risky than Ningbo GQY. The stock trades about -0.19 of its potential returns per unit of risk. The Ningbo GQY Video is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 619.00 in Ningbo GQY Video on August 27, 2024 and sell it today you would earn a total of 67.00 from holding Ningbo GQY Video or generate 10.82% 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. Ningbo GQY Video
Performance |
| Timeline |
| Ningbo Ligong Online |
| Ningbo GQY Video |
Ningbo Ligong and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Ningbo GQY
The main advantage of trading using opposite Ningbo Ligong and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Ningbo GQY 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 Ningbo GQY will offset losses from the drop in Ningbo GQY's long position.| Ningbo Ligong vs. Keli Sensing Technology | Ningbo Ligong vs. Heilongjiang Transport Development | Ningbo Ligong vs. Jinhe Biotechnology Co | Ningbo Ligong vs. Kangping Technology Co |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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