Correlation Between Ningxia Building and Grandblue Environment
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By analyzing existing cross correlation between Ningxia Building Materials and Grandblue Environment Co, you can compare the effects of market volatilities on Ningxia Building and Grandblue Environment 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 Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Building and Grandblue Environment.
Diversification Opportunities for Ningxia Building and Grandblue Environment
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningxia and Grandblue is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Building Materials and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment 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 Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of Ningxia Building i.e., Ningxia Building and Grandblue Environment go up and down completely randomly.
Pair Corralation between Ningxia Building and Grandblue Environment
Assuming the 90 days trading horizon Ningxia Building Materials is expected to under-perform the Grandblue Environment. In addition to that, Ningxia Building is 1.91 times more volatile than Grandblue Environment Co. It trades about -0.18 of its total potential returns per unit of risk. Grandblue Environment Co is currently generating about 0.0 per unit of volatility. If you would invest 2,203 in Grandblue Environment Co on October 12, 2024 and sell it today you would lose (5.00) from holding Grandblue Environment Co or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Building Materials vs. Grandblue Environment Co
Performance |
| Timeline |
| Ningxia Building Mat |
| Grandblue Environment |
Ningxia Building and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Building and Grandblue Environment
The main advantage of trading using opposite Ningxia Building and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Building position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.| Ningxia Building vs. Semiconductor Manufacturing Electronics | Ningxia Building vs. Ningbo Fujia Industrial | Ningxia Building vs. Techshine Electronics Co | Ningxia Building vs. Western Metal Materials |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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