Correlation Between Shandong Homey and Ningbo Ligong
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By analyzing existing cross correlation between Shandong Homey Aquatic and Ningbo Ligong Online, you can compare the effects of market volatilities on Shandong Homey 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 Shandong Homey with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Ningbo Ligong.
Diversification Opportunities for Shandong Homey and Ningbo Ligong
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shandong and Ningbo is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic 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 Shandong Homey 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 Shandong Homey Aquatic 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 Shandong Homey i.e., Shandong Homey and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Shandong Homey and Ningbo Ligong
Assuming the 90 days trading horizon Shandong Homey Aquatic is expected to under-perform the Ningbo Ligong. In addition to that, Shandong Homey is 1.05 times more volatile than Ningbo Ligong Online. It trades about 0.0 of its total potential returns per unit of risk. Ningbo Ligong Online is currently generating about 0.04 per unit of volatility. If you would invest 1,049 in Ningbo Ligong Online on November 27, 2024 and sell it today you would earn a total of 370.00 from holding Ningbo Ligong Online or generate 35.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Ningbo Ligong Online
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Ningbo Ligong Online |
Shandong Homey and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Ningbo Ligong
The main advantage of trading using opposite Shandong Homey and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey 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.| Shandong Homey vs. Nancal Energy Saving Tech | Shandong Homey vs. Dhc Software Co | Shandong Homey vs. China Everbright Bank | Shandong Homey vs. Farsoon Technology Co |
| Ningbo Ligong vs. Ningbo Kangqiang Electronics | Ningbo Ligong vs. Jiangxi Naipu Mining | Ningbo Ligong vs. Jinhui Mining Co | Ningbo Ligong vs. Chengtun Mining Group |
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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