Correlation Between Wuhan Yangtze and Ningbo Ligong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Yangtze Communication and Ningbo Ligong Online, you can compare the effects of market volatilities on Wuhan Yangtze and Ningbo Ligong 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 Wuhan Yangtze with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Ningbo Ligong.
Diversification Opportunities for Wuhan Yangtze and Ningbo Ligong
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wuhan and Ningbo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and Wuhan Yangtze 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 Wuhan Yangtze Communication are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Ningbo Ligong
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 1.38 times more return on investment than Ningbo Ligong. However, Wuhan Yangtze is 1.38 times more volatile than Ningbo Ligong Online. It trades about 0.05 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about 0.05 per unit of risk. If you would invest 1,685 in Wuhan Yangtze Communication on September 3, 2024 and sell it today you would earn a total of 1,284 from holding Wuhan Yangtze Communication or generate 76.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Ningbo Ligong Online
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Ningbo Ligong Online |
Wuhan Yangtze and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Ningbo Ligong
The main advantage of trading using opposite Wuhan Yangtze and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Wuhan Yangtze vs. Agricultural Bank of | Wuhan Yangtze vs. China Construction Bank | Wuhan Yangtze vs. Postal Savings Bank | Wuhan Yangtze vs. Bank of Communications |
| Ningbo Ligong vs. Cultural Investment Holdings | Ningbo Ligong vs. Gome Telecom Equipment | Ningbo Ligong vs. Bus Online Co | Ningbo Ligong vs. Holitech Technology 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |