Correlation Between 159681 and Ningxia Xiaoming
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By analyzing existing cross correlation between 159681 and Ningxia Xiaoming Agriculture, you can compare the effects of market volatilities on 159681 and Ningxia Xiaoming 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 159681 with a short position of Ningxia Xiaoming. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Ningxia Xiaoming.
Diversification Opportunities for 159681 and Ningxia Xiaoming
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Ningxia is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Ningxia Xiaoming Agriculture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Xiaoming Agr and 159681 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 159681 are associated (or correlated) with Ningxia Xiaoming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Xiaoming Agr has no effect on the direction of 159681 i.e., 159681 and Ningxia Xiaoming go up and down completely randomly.
Pair Corralation between 159681 and Ningxia Xiaoming
Assuming the 90 days trading horizon 159681 is expected to under-perform the Ningxia Xiaoming. But the etf apears to be less risky and, when comparing its historical volatility, 159681 is 1.55 times less risky than Ningxia Xiaoming. The etf trades about -0.15 of its potential returns per unit of risk. The Ningxia Xiaoming Agriculture is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,225 in Ningxia Xiaoming Agriculture on October 22, 2024 and sell it today you would lose (60.00) from holding Ningxia Xiaoming Agriculture or give up 4.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
159681 vs. Ningxia Xiaoming Agriculture
Performance |
| Timeline |
| 159681 |
| Ningxia Xiaoming Agr |
159681 and Ningxia Xiaoming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Ningxia Xiaoming
The main advantage of trading using opposite 159681 and Ningxia Xiaoming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Ningxia Xiaoming 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 Xiaoming will offset losses from the drop in Ningxia Xiaoming's long position.The idea behind 159681 and Ningxia Xiaoming Agriculture pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ningxia Xiaoming vs. Shenzhen Noposion Agrochemicals | Ningxia Xiaoming vs. Aba Chemicals Corp | Ningxia Xiaoming vs. Vohringer Home Technology | Ningxia Xiaoming vs. Bus Online Co |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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