Correlation Between Ningbo Ligong and Jiangsu Jinling
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By analyzing existing cross correlation between Ningbo Ligong Online and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Ningbo Ligong and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Jiangsu Jinling.
Diversification Opportunities for Ningbo Ligong and Jiangsu Jinling
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ningbo and Jiangsu is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Jiangsu Jinling
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 0.78 times more return on investment than Jiangsu Jinling. However, Ningbo Ligong Online is 1.28 times less risky than Jiangsu Jinling. It trades about 0.06 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.02 per unit of risk. If you would invest 880.00 in Ningbo Ligong Online on August 29, 2024 and sell it today you would earn a total of 452.00 from holding Ningbo Ligong Online or generate 51.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Ningbo Ligong Online |
| Jiangsu Jinling Sports |
Ningbo Ligong and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Jiangsu Jinling
The main advantage of trading using opposite Ningbo Ligong and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling'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 |
| Jiangsu Jinling vs. Shenzhen MYS Environmental | Jiangsu Jinling vs. AVIC Fund Management | Jiangsu Jinling vs. Shenzhen Bingchuan Network | Jiangsu Jinling vs. Penghua Shenzhen Energy |
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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