Correlation Between Ningbo Ligong and Malion New
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By analyzing existing cross correlation between Ningbo Ligong Online and Malion New Materials, you can compare the effects of market volatilities on Ningbo Ligong and Malion New 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 Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Malion New.
Diversification Opportunities for Ningbo Ligong and Malion New
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Malion is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials 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 Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Malion New go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Malion New
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to under-perform the Malion New. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Ligong Online is 2.22 times less risky than Malion New. The stock trades about -0.18 of its potential returns per unit of risk. The Malion New Materials is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 840.00 in Malion New Materials on August 29, 2024 and sell it today you would lose (25.00) from holding Malion New Materials or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Malion New Materials
Performance |
| Timeline |
| Ningbo Ligong Online |
| Malion New Materials |
Ningbo Ligong and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Malion New
The main advantage of trading using opposite Ningbo Ligong and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New's long position.| Ningbo Ligong vs. Anhui Huaren Health | Ningbo Ligong vs. De Rucci Healthy | Ningbo Ligong vs. Sunny Loan Top | Ningbo Ligong vs. Ligao Foods CoLtd |
| Malion New vs. Zijin Mining Group | Malion New vs. Wanhua Chemical Group | Malion New vs. Baoshan Iron Steel | Malion New 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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