Correlation Between Guilin Seamild and Ningxia Younglight
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By analyzing existing cross correlation between Guilin Seamild Foods and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Ningxia Younglight.
Diversification Opportunities for Guilin Seamild and Ningxia Younglight
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guilin and Ningxia is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight and Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Guilin Seamild and Ningxia Younglight
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.91 times more return on investment than Ningxia Younglight. However, Guilin Seamild Foods is 1.09 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 0.04 per unit of risk. If you would invest 1,263 in Guilin Seamild Foods on October 12, 2024 and sell it today you would earn a total of 333.00 from holding Guilin Seamild Foods or generate 26.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Guilin Seamild Foods |
| Ningxia Younglight |
Guilin Seamild and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Ningxia Younglight
The main advantage of trading using opposite Guilin Seamild and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Beijing Kingsoft Office | Guilin Seamild vs. Fibocom Wireless | Guilin Seamild vs. Ningbo MedicalSystem Biotechnology | Guilin Seamild vs. Guangdong Marubi Biotechnology |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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