Correlation Between Ningxia Building and Suzhou Mingzhi
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By analyzing existing cross correlation between Ningxia Building Materials and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Ningxia Building and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Building and Suzhou Mingzhi.
Diversification Opportunities for Ningxia Building and Suzhou Mingzhi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningxia and Suzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Building Materials and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Ningxia Building i.e., Ningxia Building and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Ningxia Building and Suzhou Mingzhi
Assuming the 90 days trading horizon Ningxia Building Materials is expected to generate 0.97 times more return on investment than Suzhou Mingzhi. However, Ningxia Building Materials is 1.03 times less risky than Suzhou Mingzhi. It trades about 0.03 of its potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about -0.01 per unit of risk. If you would invest 1,209 in Ningxia Building Materials on September 13, 2024 and sell it today you would earn a total of 299.00 from holding Ningxia Building Materials or generate 24.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Building Materials vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Ningxia Building Mat |
| Suzhou Mingzhi Technology |
Ningxia Building and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Building and Suzhou Mingzhi
The main advantage of trading using opposite Ningxia Building and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Building position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi'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 |
| Suzhou Mingzhi vs. Ming Yang Smart | Suzhou Mingzhi vs. 159681 | Suzhou Mingzhi vs. 159005 | Suzhou Mingzhi vs. Loctek Ergonomic 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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