Correlation Between Ningbo Ligong and Xinjiang Tianrun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Ligong Online and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Ningbo Ligong and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Xinjiang Tianrun.
Diversification Opportunities for Ningbo Ligong and Xinjiang Tianrun
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Xinjiang is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Xinjiang Tianrun
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 1.12 times more return on investment than Xinjiang Tianrun. However, Ningbo Ligong is 1.12 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.04 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.05 per unit of risk. If you would invest 1,059 in Ningbo Ligong Online on November 27, 2024 and sell it today you would earn a total of 360.00 from holding Ningbo Ligong Online or generate 33.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Ningbo Ligong Online |
| Xinjiang Tianrun Dairy |
Ningbo Ligong and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Xinjiang Tianrun
The main advantage of trading using opposite Ningbo Ligong and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Ningbo Ligong vs. Ningbo Kangqiang Electronics | Ningbo Ligong vs. Jiangxi Naipu Mining | Ningbo Ligong vs. Jinhui Mining Co | Ningbo Ligong vs. Chengtun Mining Group |
| Xinjiang Tianrun vs. Rising Nonferrous Metals | Xinjiang Tianrun vs. Universal Scientific Industrial | Xinjiang Tianrun vs. Linewell Software Co | Xinjiang Tianrun vs. Gem Year Industrial 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |