Correlation Between Ningbo Ligong and CIMC Vehicles
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By analyzing existing cross correlation between Ningbo Ligong Online and CIMC Vehicles Co, you can compare the effects of market volatilities on Ningbo Ligong and CIMC Vehicles 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 CIMC Vehicles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and CIMC Vehicles.
Diversification Opportunities for Ningbo Ligong and CIMC Vehicles
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and CIMC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and CIMC Vehicles Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMC Vehicles 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 CIMC Vehicles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMC Vehicles has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and CIMC Vehicles go up and down completely randomly.
Pair Corralation between Ningbo Ligong and CIMC Vehicles
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to under-perform the CIMC Vehicles. In addition to that, Ningbo Ligong is 1.14 times more volatile than CIMC Vehicles Co. It trades about -0.44 of its total potential returns per unit of risk. CIMC Vehicles Co is currently generating about -0.39 per unit of volatility. If you would invest 987.00 in CIMC Vehicles Co on October 11, 2024 and sell it today you would lose (104.00) from holding CIMC Vehicles Co or give up 10.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. CIMC Vehicles Co
Performance |
| Timeline |
| Ningbo Ligong Online |
| CIMC Vehicles |
Ningbo Ligong and CIMC Vehicles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and CIMC Vehicles
The main advantage of trading using opposite Ningbo Ligong and CIMC Vehicles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, CIMC Vehicles 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 CIMC Vehicles will offset losses from the drop in CIMC Vehicles' 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 |
| CIMC Vehicles vs. SUNSEA Telecommunications Co | CIMC Vehicles vs. Nanjing Putian Telecommunications | CIMC Vehicles vs. Southern PublishingMedia Co | CIMC Vehicles vs. Ningbo Ligong Online |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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