Correlation Between Ningbo Ligong and Jahen Household
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By analyzing existing cross correlation between Ningbo Ligong Online and Jahen Household Products, you can compare the effects of market volatilities on Ningbo Ligong and Jahen Household 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 Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Jahen Household.
Diversification Opportunities for Ningbo Ligong and Jahen Household
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Jahen is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products 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 Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Jahen Household go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Jahen Household
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 0.36 times more return on investment than Jahen Household. However, Ningbo Ligong Online is 2.79 times less risky than Jahen Household. It trades about -0.44 of its potential returns per unit of risk. Jahen Household Products is currently generating about -0.31 per unit of risk. If you would invest 1,359 in Ningbo Ligong Online on October 11, 2024 and sell it today you would lose (181.00) from holding Ningbo Ligong Online or give up 13.32% 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. Jahen Household Products
Performance |
| Timeline |
| Ningbo Ligong Online |
| Jahen Household Products |
Ningbo Ligong and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Jahen Household
The main advantage of trading using opposite Ningbo Ligong and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household's long position.| Ningbo Ligong vs. Advanced Technology Materials | Ningbo Ligong vs. Jilin OLED Material | Ningbo Ligong vs. Tongyu Communication | Ningbo Ligong vs. Jiangxi Hengda Hi Tech |
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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