Correlation Between Ningbo Ligong and Shanghai OPM
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By analyzing existing cross correlation between Ningbo Ligong Online and Shanghai OPM Biosciences, you can compare the effects of market volatilities on Ningbo Ligong and Shanghai OPM 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 Shanghai OPM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Shanghai OPM.
Diversification Opportunities for Ningbo Ligong and Shanghai OPM
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Shanghai is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Shanghai OPM Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai OPM Biosciences 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 Shanghai OPM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai OPM Biosciences has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Shanghai OPM go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Shanghai OPM
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to under-perform the Shanghai OPM. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Ligong Online is 1.61 times less risky than Shanghai OPM. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai OPM Biosciences is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,558 in Shanghai OPM Biosciences on September 1, 2024 and sell it today you would earn a total of 1,058 from holding Shanghai OPM Biosciences or generate 29.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Shanghai OPM Biosciences
Performance |
| Timeline |
| Ningbo Ligong Online |
| Shanghai OPM Biosciences |
Ningbo Ligong and Shanghai OPM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Ligong and Shanghai OPM
The main advantage of trading using opposite Ningbo Ligong and Shanghai OPM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Shanghai OPM 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 Shanghai OPM will offset losses from the drop in Shanghai OPM's long position.| Ningbo Ligong vs. Ping An Insurance | Ningbo Ligong vs. Jiangsu Financial Leasing | Ningbo Ligong vs. Servyou Software Group | Ningbo Ligong vs. Qilu Bank Co |
| Shanghai OPM vs. Glodon Software Co | Shanghai OPM vs. Sunwave Communications Co | Shanghai OPM vs. Jonjee Hi tech Industrial | Shanghai OPM vs. Guangdong Shenglu Telecommunication |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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