Correlation Between Ningxia Building and Sany Heavy
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By analyzing existing cross correlation between Ningxia Building Materials and Sany Heavy Industry, you can compare the effects of market volatilities on Ningxia Building and Sany Heavy 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 Sany Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Building and Sany Heavy.
Diversification Opportunities for Ningxia Building and Sany Heavy
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningxia and Sany is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Building Materials and Sany Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sany Heavy Industry 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 Sany Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sany Heavy Industry has no effect on the direction of Ningxia Building i.e., Ningxia Building and Sany Heavy go up and down completely randomly.
Pair Corralation between Ningxia Building and Sany Heavy
Assuming the 90 days trading horizon Ningxia Building Materials is expected to generate 1.95 times more return on investment than Sany Heavy. However, Ningxia Building is 1.95 times more volatile than Sany Heavy Industry. It trades about 0.13 of its potential returns per unit of risk. Sany Heavy Industry is currently generating about -0.33 per unit of risk. If you would invest 1,398 in Ningxia Building Materials on September 5, 2024 and sell it today you would earn a total of 92.00 from holding Ningxia Building Materials or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Building Materials vs. Sany Heavy Industry
Performance |
| Timeline |
| Ningxia Building Mat |
| Sany Heavy Industry |
Ningxia Building and Sany Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Building and Sany Heavy
The main advantage of trading using opposite Ningxia Building and Sany Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Building position performs unexpectedly, Sany Heavy 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 Sany Heavy will offset losses from the drop in Sany Heavy's long position.| Ningxia Building vs. Everdisplay Optronics Shanghai | Ningxia Building vs. GKHT Medical Technology | Ningxia Building vs. Lander Sports Development | Ningxia Building vs. Shenzhen Glory Medical |
| Sany Heavy vs. Zoje Resources Investment | Sany Heavy vs. Jointo Energy Investment | Sany Heavy vs. Jiugui Liquor Co | Sany Heavy vs. Tieling Newcity Investment |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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