Correlation Between Ningbo Ligong and Miracll Chemicals
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By analyzing existing cross correlation between Ningbo Ligong Online and Miracll Chemicals Co, you can compare the effects of market volatilities on Ningbo Ligong and Miracll Chemicals 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 Miracll Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Miracll Chemicals.
Diversification Opportunities for Ningbo Ligong and Miracll Chemicals
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Miracll is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Miracll Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miracll Chemicals 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 Miracll Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miracll Chemicals has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Miracll Chemicals go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Miracll Chemicals
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 0.87 times more return on investment than Miracll Chemicals. However, Ningbo Ligong Online is 1.15 times less risky than Miracll Chemicals. It trades about 0.05 of its potential returns per unit of risk. Miracll Chemicals Co is currently generating about 0.03 per unit of risk. If you would invest 942.00 in Ningbo Ligong Online on September 4, 2024 and sell it today you would earn a total of 392.00 from holding Ningbo Ligong Online or generate 41.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Miracll Chemicals Co
Performance |
| Timeline |
| Ningbo Ligong Online |
| Miracll Chemicals |
Ningbo Ligong and Miracll Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Miracll Chemicals
The main advantage of trading using opposite Ningbo Ligong and Miracll Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Miracll Chemicals 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 Miracll Chemicals will offset losses from the drop in Miracll Chemicals' long position.| Ningbo Ligong vs. Cofoe Medical Technology | Ningbo Ligong vs. Hengkang Medical Group | Ningbo Ligong vs. Nanjing Medlander Medical | Ningbo Ligong vs. Nancal Energy Saving Tech |
| Miracll Chemicals vs. Inspur Software Co | Miracll Chemicals vs. Beijing Sanyuan Foods | Miracll Chemicals vs. New Hope Dairy | Miracll Chemicals vs. Youyou Foods Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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