Correlation Between Ningxia Building and Wuhan Yangtze
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningxia Building Materials and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Ningxia Building and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Building and Wuhan Yangtze.
Diversification Opportunities for Ningxia Building and Wuhan Yangtze
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningxia and Wuhan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Building Materials and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Ningxia Building i.e., Ningxia Building and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Ningxia Building and Wuhan Yangtze
Assuming the 90 days trading horizon Ningxia Building Materials is expected to under-perform the Wuhan Yangtze. But the stock apears to be less risky and, when comparing its historical volatility, Ningxia Building Materials is 1.59 times less risky than Wuhan Yangtze. The stock trades about -0.16 of its potential returns per unit of risk. The Wuhan Yangtze Communication is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,226 in Wuhan Yangtze Communication on November 3, 2024 and sell it today you would earn a total of 67.00 from holding Wuhan Yangtze Communication or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Building Materials vs. Wuhan Yangtze Communication
Performance |
| Timeline |
| Ningxia Building Mat |
| Wuhan Yangtze Commun |
Ningxia Building and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Building and Wuhan Yangtze
The main advantage of trading using opposite Ningxia Building and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Building position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Ningxia Building vs. Allied Machinery Co | Ningxia Building vs. Huasi Agricultural Development | Ningxia Building vs. Ningxia Younglight Chemicals | Ningxia Building vs. Lutian Machinery Co |
| Wuhan Yangtze vs. GuoChuang Software Co | Wuhan Yangtze vs. Hangzhou Pinming Software | Wuhan Yangtze vs. Jiangsu Hoperun Software | Wuhan Yangtze vs. Iat Automobile Technology |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |