Correlation Between Chengdu B and Ningxia Building
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu B ray Media and Ningxia Building Materials, you can compare the effects of market volatilities on Chengdu B and Ningxia Building 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 Chengdu B with a short position of Ningxia Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Ningxia Building.
Diversification Opportunities for Chengdu B and Ningxia Building
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Ningxia is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Ningxia Building Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Building Mat and Chengdu B 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 Chengdu B ray Media are associated (or correlated) with Ningxia Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Building Mat has no effect on the direction of Chengdu B i.e., Chengdu B and Ningxia Building go up and down completely randomly.
Pair Corralation between Chengdu B and Ningxia Building
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Ningxia Building. In addition to that, Chengdu B is 1.18 times more volatile than Ningxia Building Materials. It trades about -0.2 of its total potential returns per unit of risk. Ningxia Building Materials is currently generating about -0.17 per unit of volatility. If you would invest 1,489 in Ningxia Building Materials on October 25, 2024 and sell it today you would lose (137.00) from holding Ningxia Building Materials or give up 9.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Ningxia Building Materials
Performance |
| Timeline |
| Chengdu B ray |
| Ningxia Building Mat |
Chengdu B and Ningxia Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Ningxia Building
The main advantage of trading using opposite Chengdu B and Ningxia Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B position performs unexpectedly, Ningxia Building 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 Ningxia Building will offset losses from the drop in Ningxia Building's long position.| Chengdu B vs. Industrial and Commercial | Chengdu B vs. Agricultural Bank of | Chengdu B vs. China Construction Bank | Chengdu B vs. Bank of China |
| Ningxia Building vs. Zijin Mining Group | Ningxia Building vs. Wanhua Chemical Group | Ningxia Building vs. Baoshan Iron Steel | Ningxia Building vs. Rongsheng Petrochemical Co |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |