Correlation Between Xiamen Jihong and Ningxia Younglight
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By analyzing existing cross correlation between Xiamen Jihong Package and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Xiamen Jihong 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 Xiamen Jihong with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Ningxia Younglight.
Diversification Opportunities for Xiamen Jihong and Ningxia Younglight
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Ningxia is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight and Xiamen Jihong 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 Xiamen Jihong Package 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 Xiamen Jihong i.e., Xiamen Jihong and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Ningxia Younglight
Assuming the 90 days trading horizon Xiamen Jihong Package is expected to under-perform the Ningxia Younglight. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen Jihong Package is 1.03 times less risky than Ningxia Younglight. The stock trades about -0.02 of its potential returns per unit of risk. The Ningxia Younglight Chemicals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 667.00 in Ningxia Younglight Chemicals on October 12, 2024 and sell it today you would earn a total of 85.00 from holding Ningxia Younglight Chemicals or generate 12.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Xiamen Jihong Package |
| Ningxia Younglight |
Xiamen Jihong and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Ningxia Younglight
The main advantage of trading using opposite Xiamen Jihong and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong 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.| Xiamen Jihong vs. Shenzhen Centralcon Investment | Xiamen Jihong vs. Changchun UP Optotech | Xiamen Jihong vs. Tianshui Huatian Technology | Xiamen Jihong vs. Zoje Resources Investment |
| Ningxia Younglight vs. Zoje Resources Investment | Ningxia Younglight vs. Shanghai Material Trading | Ningxia Younglight vs. Vanfund Urban Investment | Ningxia Younglight vs. Postal Savings Bank |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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