Correlation Between Ningbo Ligong and Southern PublishingMedia
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By analyzing existing cross correlation between Ningbo Ligong Online and Southern PublishingMedia Co, you can compare the effects of market volatilities on Ningbo Ligong and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Southern PublishingMedia.
Diversification Opportunities for Ningbo Ligong and Southern PublishingMedia
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ningbo and Southern is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Southern PublishingMedia
Assuming the 90 days trading horizon Ningbo Ligong is expected to generate 1.13 times less return on investment than Southern PublishingMedia. But when comparing it to its historical volatility, Ningbo Ligong Online is 1.17 times less risky than Southern PublishingMedia. It trades about 0.06 of its potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,129 in Southern PublishingMedia Co on August 28, 2024 and sell it today you would earn a total of 315.00 from holding Southern PublishingMedia Co or generate 27.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Ningbo Ligong Online |
| Southern PublishingMedia |
Ningbo Ligong and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Southern PublishingMedia
The main advantage of trading using opposite Ningbo Ligong and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| Ningbo Ligong vs. Anhui Huaren Health | Ningbo Ligong vs. De Rucci Healthy | Ningbo Ligong vs. Sunny Loan Top | Ningbo Ligong vs. Ligao Foods CoLtd |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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