Correlation Between Ningbo Ligong and Yingde Greatchem
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By analyzing existing cross correlation between Ningbo Ligong Online and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Ningbo Ligong and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Yingde Greatchem.
Diversification Opportunities for Ningbo Ligong and Yingde Greatchem
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Yingde is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Yingde Greatchem
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to under-perform the Yingde Greatchem. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Ligong Online is 1.28 times less risky than Yingde Greatchem. The stock trades about -0.09 of its potential returns per unit of risk. The Yingde Greatchem Chemicals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,473 in Yingde Greatchem Chemicals on September 3, 2024 and sell it today you would earn a total of 72.00 from holding Yingde Greatchem Chemicals or generate 2.91% 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. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Ningbo Ligong Online |
| Yingde Greatchem Che |
Ningbo Ligong and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Yingde Greatchem
The main advantage of trading using opposite Ningbo Ligong and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem'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 |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Rongsheng Petrochemical Co | Yingde Greatchem vs. Hoshine Silicon Ind |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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