Correlation Between Ningbo Ligong and Zhangjiagang Freetrade
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By analyzing existing cross correlation between Ningbo Ligong Online and Zhangjiagang Freetrade Science, you can compare the effects of market volatilities on Ningbo Ligong and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Zhangjiagang Freetrade.
Diversification Opportunities for Ningbo Ligong and Zhangjiagang Freetrade
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Zhangjiagang is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Zhangjiagang Freetrade Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Freetrade has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Zhangjiagang Freetrade go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Zhangjiagang Freetrade
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 1.38 times more return on investment than Zhangjiagang Freetrade. However, Ningbo Ligong is 1.38 times more volatile than Zhangjiagang Freetrade Science. It trades about -0.07 of its potential returns per unit of risk. Zhangjiagang Freetrade Science is currently generating about -0.17 per unit of risk. If you would invest 1,331 in Ningbo Ligong Online on October 17, 2024 and sell it today you would lose (66.00) from holding Ningbo Ligong Online or give up 4.96% 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. Zhangjiagang Freetrade Science
Performance |
| Timeline |
| Ningbo Ligong Online |
| Zhangjiagang Freetrade |
Ningbo Ligong and Zhangjiagang Freetrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Zhangjiagang Freetrade
The main advantage of trading using opposite Ningbo Ligong and Zhangjiagang Freetrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Zhangjiagang Freetrade 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 Zhangjiagang Freetrade will offset losses from the drop in Zhangjiagang Freetrade's long position.| Ningbo Ligong vs. Anyang Iron Steel | Ningbo Ligong vs. GreenTech Environmental Co | Ningbo Ligong vs. Fujian Nanwang Environment | Ningbo Ligong vs. Ping An Insurance |
| Zhangjiagang Freetrade vs. Jiangsu Phoenix Publishing | Zhangjiagang Freetrade vs. Ningbo Ligong Online | Zhangjiagang Freetrade vs. Citic Offshore Helicopter | Zhangjiagang Freetrade vs. China Reform Health |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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