Correlation Between Changjiang Jinggong and Ningbo Ligong
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Ningbo Ligong Online, you can compare the effects of market volatilities on Changjiang Jinggong 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 Changjiang Jinggong with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Ningbo Ligong.
Diversification Opportunities for Changjiang Jinggong and Ningbo Ligong
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Changjiang and Ningbo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel 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 Changjiang Jinggong 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 Changjiang Jinggong Steel 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 Changjiang Jinggong i.e., Changjiang Jinggong and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Ningbo Ligong
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to generate 1.07 times more return on investment than Ningbo Ligong. However, Changjiang Jinggong is 1.07 times more volatile than Ningbo Ligong Online. It trades about 0.16 of its potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.27 per unit of risk. If you would invest 280.00 in Changjiang Jinggong Steel on August 25, 2024 and sell it today you would earn a total of 19.00 from holding Changjiang Jinggong Steel or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Ningbo Ligong Online
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Ningbo Ligong Online |
Changjiang Jinggong and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Ningbo Ligong
The main advantage of trading using opposite Changjiang Jinggong and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong 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.| Changjiang Jinggong vs. Yingde Greatchem Chemicals | Changjiang Jinggong vs. Haima Automobile Group | Changjiang Jinggong vs. Zhengzhou Coal Mining | Changjiang Jinggong vs. Hubei Xingfa Chemicals |
| Ningbo Ligong vs. Hainan Mining Co | Ningbo Ligong vs. Offshore Oil Engineering | Ningbo Ligong vs. Jinhui Mining Co | Ningbo Ligong vs. Fujian Oriental Silver |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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