Correlation Between Sunny Loan and Ningbo Homelink
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By analyzing existing cross correlation between Sunny Loan Top and Ningbo Homelink Eco iTech, you can compare the effects of market volatilities on Sunny Loan and Ningbo Homelink 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 Sunny Loan with a short position of Ningbo Homelink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Ningbo Homelink.
Diversification Opportunities for Sunny Loan and Ningbo Homelink
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunny and Ningbo is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Ningbo Homelink Eco iTech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Homelink Eco and Sunny Loan 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 Sunny Loan Top are associated (or correlated) with Ningbo Homelink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Homelink Eco has no effect on the direction of Sunny Loan i.e., Sunny Loan and Ningbo Homelink go up and down completely randomly.
Pair Corralation between Sunny Loan and Ningbo Homelink
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Ningbo Homelink. In addition to that, Sunny Loan is 1.35 times more volatile than Ningbo Homelink Eco iTech. It trades about -0.28 of its total potential returns per unit of risk. Ningbo Homelink Eco iTech is currently generating about -0.09 per unit of volatility. If you would invest 1,750 in Ningbo Homelink Eco iTech on October 12, 2024 and sell it today you would lose (120.00) from holding Ningbo Homelink Eco iTech or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Ningbo Homelink Eco iTech
Performance |
| Timeline |
| Sunny Loan Top |
| Ningbo Homelink Eco |
Sunny Loan and Ningbo Homelink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Ningbo Homelink
The main advantage of trading using opposite Sunny Loan and Ningbo Homelink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, Ningbo Homelink 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 Homelink will offset losses from the drop in Ningbo Homelink's long position.| Sunny Loan vs. Puya Semiconductor Shanghai | Sunny Loan vs. Suzhou Oriental Semiconductor | Sunny Loan vs. Ingenic Semiconductor | Sunny Loan vs. JCHX Mining Management |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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