Correlation Between Ningxia Building and Monalisa Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningxia Building Materials and Monalisa Group Co, you can compare the effects of market volatilities on Ningxia Building and Monalisa Group 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 Ningxia Building with a short position of Monalisa Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Building and Monalisa Group.
Diversification Opportunities for Ningxia Building and Monalisa Group
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningxia and Monalisa is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Building Materials and Monalisa Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monalisa Group and Ningxia Building 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 Ningxia Building Materials are associated (or correlated) with Monalisa Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monalisa Group has no effect on the direction of Ningxia Building i.e., Ningxia Building and Monalisa Group go up and down completely randomly.
Pair Corralation between Ningxia Building and Monalisa Group
Assuming the 90 days trading horizon Ningxia Building Materials is expected to under-perform the Monalisa Group. But the stock apears to be less risky and, when comparing its historical volatility, Ningxia Building Materials is 4.48 times less risky than Monalisa Group. The stock trades about -0.01 of its potential returns per unit of risk. The Monalisa Group Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,306 in Monalisa Group Co on September 14, 2024 and sell it today you would lose (350.00) from holding Monalisa Group Co or give up 26.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.97% |
| Values | Daily Returns |
Ningxia Building Materials vs. Monalisa Group Co
Performance |
| Timeline |
| Ningxia Building Mat |
| Monalisa Group |
Ningxia Building and Monalisa Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Building and Monalisa Group
The main advantage of trading using opposite Ningxia Building and Monalisa Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Building position performs unexpectedly, Monalisa Group 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 Monalisa Group will offset losses from the drop in Monalisa Group's long position.| Ningxia Building vs. Zijin Mining Group | Ningxia Building vs. Wanhua Chemical Group | Ningxia Building vs. Baoshan Iron Steel | Ningxia Building vs. Shandong Gold Mining |
| Monalisa Group vs. PetroChina Co Ltd | Monalisa Group vs. China Mobile Limited | Monalisa Group vs. CNOOC Limited | Monalisa Group vs. Ping An Insurance |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Transaction History View history of all your transactions and understand their impact on performance |