Correlation Between Ningbo Ligong and Dow Jones
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By analyzing existing cross correlation between Ningbo Ligong Online and Dow Jones Industrial, you can compare the effects of market volatilities on Ningbo Ligong and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Dow Jones.
Diversification Opportunities for Ningbo Ligong and Dow Jones
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Dow is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Dow Jones go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Dow Jones
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 4.09 times more return on investment than Dow Jones. However, Ningbo Ligong is 4.09 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.16 per unit of risk. If you would invest 1,086 in Ningbo Ligong Online on August 25, 2024 and sell it today you would earn a total of 245.00 from holding Ningbo Ligong Online or generate 22.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.31% |
| Values | Daily Returns |
Ningbo Ligong Online vs. Dow Jones Industrial
Performance |
| Timeline |
Ningbo Ligong and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Ningbo Ligong Online
Pair trading matchups for Ningbo Ligong
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Ningbo Ligong and Dow Jones
The main advantage of trading using opposite Ningbo Ligong and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Ningbo Ligong vs. Hainan Mining Co | Ningbo Ligong vs. Offshore Oil Engineering | Ningbo Ligong vs. Jinhui Mining Co | Ningbo Ligong vs. Fujian Oriental Silver |
| Dow Jones vs. Vistra Energy Corp | Dow Jones vs. Fluence Energy | Dow Jones vs. Old Republic International | Dow Jones vs. Empresa Distribuidora y |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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