Correlation Between Guangzhou Haige and Ningxia Younglight
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Haige Communications and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Guangzhou Haige and Ningxia Younglight 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 Guangzhou Haige with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haige and Ningxia Younglight.
Diversification Opportunities for Guangzhou Haige and Ningxia Younglight
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Ningxia is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haige Communications and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight and Guangzhou Haige 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 Guangzhou Haige Communications are associated (or correlated) with Ningxia Younglight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Younglight has no effect on the direction of Guangzhou Haige i.e., Guangzhou Haige and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Guangzhou Haige and Ningxia Younglight
Assuming the 90 days trading horizon Guangzhou Haige is expected to generate 1.71 times less return on investment than Ningxia Younglight. But when comparing it to its historical volatility, Guangzhou Haige Communications is 1.0 times less risky than Ningxia Younglight. It trades about 0.06 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 615.00 in Ningxia Younglight Chemicals on September 3, 2024 and sell it today you would earn a total of 247.00 from holding Ningxia Younglight Chemicals or generate 40.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haige Communications vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Guangzhou Haige Comm |
| Ningxia Younglight |
Guangzhou Haige and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haige and Ningxia Younglight
The main advantage of trading using opposite Guangzhou Haige and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haige position performs unexpectedly, Ningxia Younglight 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 Ningxia Younglight will offset losses from the drop in Ningxia Younglight's long position.| Guangzhou Haige vs. Agricultural Bank of | Guangzhou Haige vs. China Construction Bank | Guangzhou Haige vs. Postal Savings Bank | Guangzhou Haige vs. Bank of Communications |
| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Hoshine Silicon Ind |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |