Correlation Between Ningbo Ligong and Cansino Biologics
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By analyzing existing cross correlation between Ningbo Ligong Online and Cansino Biologics, you can compare the effects of market volatilities on Ningbo Ligong and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Cansino Biologics.
Diversification Opportunities for Ningbo Ligong and Cansino Biologics
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Cansino is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Cansino Biologics go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Cansino Biologics
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 1.53 times more return on investment than Cansino Biologics. However, Ningbo Ligong is 1.53 times more volatile than Cansino Biologics. It trades about 0.07 of its potential returns per unit of risk. Cansino Biologics is currently generating about -0.13 per unit of risk. If you would invest 1,259 in Ningbo Ligong Online on November 1, 2024 and sell it today you would earn a total of 42.00 from holding Ningbo Ligong Online or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Cansino Biologics
Performance |
| Timeline |
| Ningbo Ligong Online |
| Cansino Biologics |
Ningbo Ligong and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Cansino Biologics
The main advantage of trading using opposite Ningbo Ligong and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' long position.| Ningbo Ligong vs. Guangdong TianYiMa Information | Ningbo Ligong vs. Wonders Information | Ningbo Ligong vs. Zhejiang Kingland Pipeline | Ningbo Ligong vs. Sublime China Information |
| Cansino Biologics vs. Sinocelltech Group | Cansino Biologics vs. Ningbo Bohui Chemical | Cansino Biologics vs. Kuang Chi Technologies | Cansino Biologics vs. Liaoning Dingjide Petrochemical |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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