Correlation Between Asymchem Laboratories and Ningxia Building
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By analyzing existing cross correlation between Asymchem Laboratories Tian and Ningxia Building Materials, you can compare the effects of market volatilities on Asymchem Laboratories and Ningxia Building 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 Asymchem Laboratories with a short position of Ningxia Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asymchem Laboratories and Ningxia Building.
Diversification Opportunities for Asymchem Laboratories and Ningxia Building
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Asymchem and Ningxia is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Asymchem Laboratories Tian and Ningxia Building Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Building Mat and Asymchem Laboratories 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 Asymchem Laboratories Tian are associated (or correlated) with Ningxia Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Building Mat has no effect on the direction of Asymchem Laboratories i.e., Asymchem Laboratories and Ningxia Building go up and down completely randomly.
Pair Corralation between Asymchem Laboratories and Ningxia Building
Assuming the 90 days trading horizon Asymchem Laboratories is expected to generate 2.2 times less return on investment than Ningxia Building. But when comparing it to its historical volatility, Asymchem Laboratories Tian is 1.03 times less risky than Ningxia Building. It trades about 0.03 of its potential returns per unit of risk. Ningxia Building Materials is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,457 in Ningxia Building Materials on September 1, 2024 and sell it today you would earn a total of 50.00 from holding Ningxia Building Materials or generate 3.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Asymchem Laboratories Tian vs. Ningxia Building Materials
Performance |
| Timeline |
| Asymchem Laboratories |
| Ningxia Building Mat |
Asymchem Laboratories and Ningxia Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asymchem Laboratories and Ningxia Building
The main advantage of trading using opposite Asymchem Laboratories and Ningxia Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asymchem Laboratories position performs unexpectedly, Ningxia Building 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 Building will offset losses from the drop in Ningxia Building's long position.| Asymchem Laboratories vs. Tongling Nonferrous Metals | Asymchem Laboratories vs. Peoples Insurance of | Asymchem Laboratories vs. Postal Savings Bank | Asymchem Laboratories vs. Western Metal Materials |
| Ningxia Building vs. Jiangxi Naipu Mining | Ningxia Building vs. Allmed Medical Products | Ningxia Building vs. Minmetals Capital Co | Ningxia Building vs. Cowealth Medical China |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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