Correlation Between Ningbo Ligong and Hainan Haiqi
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By analyzing existing cross correlation between Ningbo Ligong Online and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Ningbo Ligong and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Hainan Haiqi.
Diversification Opportunities for Ningbo Ligong and Hainan Haiqi
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Hainan is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Hainan Haiqi
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to under-perform the Hainan Haiqi. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Ligong Online is 2.07 times less risky than Hainan Haiqi. The stock trades about -0.05 of its potential returns per unit of risk. The Hainan Haiqi Transportation is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,931 in Hainan Haiqi Transportation on September 5, 2024 and sell it today you would earn a total of 241.00 from holding Hainan Haiqi Transportation or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Ningbo Ligong Online |
| Hainan Haiqi Transpo |
Ningbo Ligong and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Hainan Haiqi
The main advantage of trading using opposite Ningbo Ligong and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Ningbo Ligong vs. Zhejiang Kingland Pipeline | Ningbo Ligong vs. China Sports Industry | Ningbo Ligong vs. Guangzhou Jointas Chemical | Ningbo Ligong vs. Miracll Chemicals Co |
| Hainan Haiqi vs. Xiwang Foodstuffs Co | Hainan Haiqi vs. Ningbo Ligong Online | Hainan Haiqi vs. Pengxin International Mining | Hainan Haiqi vs. V V Food |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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