Correlation Between Ningbo Ligong and Sichuan Hebang
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By analyzing existing cross correlation between Ningbo Ligong Online and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Ningbo Ligong and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Sichuan Hebang.
Diversification Opportunities for Ningbo Ligong and Sichuan Hebang
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Sichuan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Sichuan Hebang
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 0.84 times more return on investment than Sichuan Hebang. However, Ningbo Ligong Online is 1.19 times less risky than Sichuan Hebang. It trades about -0.43 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about -0.37 per unit of risk. If you would invest 1,359 in Ningbo Ligong Online on October 11, 2024 and sell it today you would lose (175.00) from holding Ningbo Ligong Online or give up 12.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Ningbo Ligong Online |
| Sichuan Hebang Biote |
Ningbo Ligong and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Sichuan Hebang
The main advantage of trading using opposite Ningbo Ligong and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's 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 |
| Sichuan Hebang vs. Sichuan Fulin Transportation | Sichuan Hebang vs. Dazhong Transportation Group | Sichuan Hebang vs. Anhui Transport Consulting | Sichuan Hebang vs. Shanghai Broadband Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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