Correlation Between Guangdong Advertising and Ningbo Ligong
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By analyzing existing cross correlation between Guangdong Advertising Co and Ningbo Ligong Online, you can compare the effects of market volatilities on Guangdong Advertising and Ningbo Ligong 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 Guangdong Advertising with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Advertising and Ningbo Ligong.
Diversification Opportunities for Guangdong Advertising and Ningbo Ligong
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Ningbo is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Advertising Co and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and Guangdong Advertising 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 Guangdong Advertising Co are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Guangdong Advertising i.e., Guangdong Advertising and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Guangdong Advertising and Ningbo Ligong
Assuming the 90 days trading horizon Guangdong Advertising Co is expected to generate 1.52 times more return on investment than Ningbo Ligong. However, Guangdong Advertising is 1.52 times more volatile than Ningbo Ligong Online. It trades about 0.24 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.02 per unit of risk. If you would invest 466.00 in Guangdong Advertising Co on August 28, 2024 and sell it today you would earn a total of 332.00 from holding Guangdong Advertising Co or generate 71.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Advertising Co vs. Ningbo Ligong Online
Performance |
| Timeline |
| Guangdong Advertising |
| Ningbo Ligong Online |
Guangdong Advertising and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Advertising and Ningbo Ligong
The main advantage of trading using opposite Guangdong Advertising and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Advertising position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Guangdong Advertising vs. Industrial and Commercial | Guangdong Advertising vs. Agricultural Bank of | Guangdong Advertising vs. China Construction Bank | Guangdong Advertising vs. Bank of China |
| Ningbo Ligong vs. Keli Sensing Technology | Ningbo Ligong vs. Heilongjiang Transport Development | Ningbo Ligong vs. Jinhe Biotechnology Co | Ningbo Ligong vs. Kangping Technology Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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