Correlation Between Weihai Honglin and Ningxia Xiaoming
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By analyzing existing cross correlation between Weihai Honglin Electronic and Ningxia Xiaoming Agriculture, you can compare the effects of market volatilities on Weihai Honglin 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 Weihai Honglin with a short position of Ningxia Xiaoming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weihai Honglin and Ningxia Xiaoming.
Diversification Opportunities for Weihai Honglin and Ningxia Xiaoming
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Weihai and Ningxia is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Weihai Honglin Electronic 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 Weihai Honglin 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 Weihai Honglin Electronic 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 Weihai Honglin i.e., Weihai Honglin and Ningxia Xiaoming go up and down completely randomly.
Pair Corralation between Weihai Honglin and Ningxia Xiaoming
Assuming the 90 days trading horizon Weihai Honglin Electronic is expected to under-perform the Ningxia Xiaoming. But the stock apears to be less risky and, when comparing its historical volatility, Weihai Honglin Electronic is 1.16 times less risky than Ningxia Xiaoming. The stock trades about -0.02 of its potential returns per unit of risk. The Ningxia Xiaoming Agriculture is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,721 in Ningxia Xiaoming Agriculture on October 16, 2024 and sell it today you would lose (630.00) from holding Ningxia Xiaoming Agriculture or give up 36.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.89% |
| Values | Daily Returns |
Weihai Honglin Electronic vs. Ningxia Xiaoming Agriculture
Performance |
| Timeline |
| Weihai Honglin Electronic |
| Ningxia Xiaoming Agr |
Weihai Honglin and Ningxia Xiaoming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weihai Honglin and Ningxia Xiaoming
The main advantage of trading using opposite Weihai Honglin and Ningxia Xiaoming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weihai Honglin 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.| Weihai Honglin vs. Uroica Mining Safety | Weihai Honglin vs. Jinxiandai Information Industry | Weihai Honglin vs. Lootom Telcovideo Network | Weihai Honglin vs. Jinling Hotel Corp |
| Ningxia Xiaoming vs. Weihai Honglin Electronic | Ningxia Xiaoming vs. Sihui Fuji Electronics | Ningxia Xiaoming vs. Uroica Mining Safety | Ningxia Xiaoming vs. Guocheng Mining 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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