Correlation Between Fujian Oriental and Ningbo Ligong
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By analyzing existing cross correlation between Fujian Oriental Silver and Ningbo Ligong Online, you can compare the effects of market volatilities on Fujian Oriental 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 Fujian Oriental with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Ningbo Ligong.
Diversification Opportunities for Fujian Oriental and Ningbo Ligong
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fujian and Ningbo is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver 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 Fujian Oriental 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 Fujian Oriental Silver 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 Fujian Oriental i.e., Fujian Oriental and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Fujian Oriental and Ningbo Ligong
Assuming the 90 days trading horizon Fujian Oriental Silver is expected to under-perform the Ningbo Ligong. In addition to that, Fujian Oriental is 1.96 times more volatile than Ningbo Ligong Online. It trades about -0.26 of its total potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.18 per unit of volatility. If you would invest 1,432 in Ningbo Ligong Online on August 29, 2024 and sell it today you would lose (100.00) from holding Ningbo Ligong Online or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Ningbo Ligong Online
Performance |
| Timeline |
| Fujian Oriental Silver |
| Ningbo Ligong Online |
Fujian Oriental and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Ningbo Ligong
The main advantage of trading using opposite Fujian Oriental and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental 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.| Fujian Oriental vs. Industrial and Commercial | Fujian Oriental vs. Agricultural Bank of | Fujian Oriental vs. China Construction Bank | Fujian Oriental vs. Bank of China |
| Ningbo Ligong vs. Anhui Huaren Health | Ningbo Ligong vs. De Rucci Healthy | Ningbo Ligong vs. Sunny Loan Top | Ningbo Ligong vs. Ligao Foods CoLtd |
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.
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