Correlation Between ButOne Information and Ningbo Ligong
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By analyzing existing cross correlation between ButOne Information Corp and Ningbo Ligong Online, you can compare the effects of market volatilities on ButOne Information and Ningbo Ligong 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 ButOne Information with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and Ningbo Ligong.
Diversification Opportunities for ButOne Information and Ningbo Ligong
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ButOne and Ningbo is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and ButOne Information 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 ButOne Information Corp are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of ButOne Information i.e., ButOne Information and Ningbo Ligong go up and down completely randomly.
Pair Corralation between ButOne Information and Ningbo Ligong
Assuming the 90 days trading horizon ButOne Information Corp is expected to under-perform the Ningbo Ligong. In addition to that, ButOne Information is 1.43 times more volatile than Ningbo Ligong Online. It trades about -0.03 of its total potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.03 per unit of volatility. If you would invest 1,368 in Ningbo Ligong Online on November 2, 2024 and sell it today you would lose (67.00) from holding Ningbo Ligong Online or give up 4.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. Ningbo Ligong Online
Performance |
| Timeline |
| ButOne Information Corp |
| Ningbo Ligong Online |
ButOne Information and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and Ningbo Ligong
The main advantage of trading using opposite ButOne Information and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| ButOne Information vs. Jilin Jlu Communication | ButOne Information vs. China Publishing Media | ButOne Information vs. Guangdong Jinma Entertainment | ButOne Information vs. Ciwen Media Co |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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