Correlation Between Monalisa Group and Ningxia Younglight
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By analyzing existing cross correlation between Monalisa Group Co and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Monalisa Group 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 Monalisa Group with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monalisa Group and Ningxia Younglight.
Diversification Opportunities for Monalisa Group and Ningxia Younglight
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Monalisa and Ningxia is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Monalisa Group Co and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight and Monalisa Group 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 Monalisa Group Co 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 Monalisa Group i.e., Monalisa Group and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Monalisa Group and Ningxia Younglight
Assuming the 90 days trading horizon Monalisa Group Co is expected to generate 0.67 times more return on investment than Ningxia Younglight. However, Monalisa Group Co is 1.49 times less risky than Ningxia Younglight. It trades about 0.05 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about -0.28 per unit of risk. If you would invest 900.00 in Monalisa Group Co on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Monalisa Group Co or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monalisa Group Co vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Monalisa Group |
| Ningxia Younglight |
Monalisa Group and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monalisa Group and Ningxia Younglight
The main advantage of trading using opposite Monalisa Group and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monalisa Group 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.| Monalisa Group vs. Spring Airlines Co | Monalisa Group vs. Kangxin New Materials | Monalisa Group vs. Shandong Publishing Media | Monalisa Group vs. Ningxia Building Materials |
| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Shandong Gold Mining |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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