Correlation Between Sichuan Yahua and Ningbo Jintian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sichuan Yahua Industrial and Ningbo Jintian Copper, you can compare the effects of market volatilities on Sichuan Yahua and Ningbo Jintian 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 Sichuan Yahua with a short position of Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Ningbo Jintian.
Diversification Opportunities for Sichuan Yahua and Ningbo Jintian
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Ningbo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper and Sichuan Yahua 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 Sichuan Yahua Industrial are associated (or correlated) with Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Ningbo Jintian
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.24 times more return on investment than Ningbo Jintian. However, Sichuan Yahua is 1.24 times more volatile than Ningbo Jintian Copper. It trades about 0.13 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.06 per unit of risk. If you would invest 872.00 in Sichuan Yahua Industrial on October 25, 2024 and sell it today you would earn a total of 453.00 from holding Sichuan Yahua Industrial or generate 51.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Ningbo Jintian Copper |
Sichuan Yahua and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Ningbo Jintian
The main advantage of trading using opposite Sichuan Yahua and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Ningbo Jintian 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 Jintian will offset losses from the drop in Ningbo Jintian's long position.| Sichuan Yahua vs. Heilongjiang Transport Development | Sichuan Yahua vs. Shanghai Construction Group | Sichuan Yahua vs. Tongling Nonferrous Metals | Sichuan Yahua vs. Sino Platinum Metals Co |
| Ningbo Jintian vs. China Minmetals Rare | Ningbo Jintian vs. Thinkon Semiconductor Jinzhou | Ningbo Jintian vs. Rising Nonferrous Metals | Ningbo Jintian vs. Sichuan Yahua Industrial |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |