Correlation Between Ningbo Thermal and Yili Chuanning
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By analyzing existing cross correlation between Ningbo Thermal Power and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Ningbo Thermal and Yili Chuanning 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 Ningbo Thermal with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Thermal and Yili Chuanning.
Diversification Opportunities for Ningbo Thermal and Yili Chuanning
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Yili is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Thermal Power and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote and Ningbo Thermal 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 Ningbo Thermal Power are associated (or correlated) with Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Ningbo Thermal i.e., Ningbo Thermal and Yili Chuanning go up and down completely randomly.
Pair Corralation between Ningbo Thermal and Yili Chuanning
Assuming the 90 days trading horizon Ningbo Thermal is expected to generate 3.14 times less return on investment than Yili Chuanning. But when comparing it to its historical volatility, Ningbo Thermal Power is 1.6 times less risky than Yili Chuanning. It trades about 0.03 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 896.00 in Yili Chuanning Biotechnology on October 22, 2024 and sell it today you would earn a total of 316.00 from holding Yili Chuanning Biotechnology or generate 35.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.55% |
| Values | Daily Returns |
Ningbo Thermal Power vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Ningbo Thermal Power |
| Yili Chuanning Biote |
Ningbo Thermal and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Thermal and Yili Chuanning
The main advantage of trading using opposite Ningbo Thermal and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Thermal position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Ningbo Thermal vs. Cicc Fund Management | Ningbo Thermal vs. Heilongjiang Transport Development | Ningbo Thermal vs. Shanghai Yanpu Metal | Ningbo Thermal vs. Xinjiang Sailing Information |
| Yili Chuanning vs. Shenyang Chemical Industry | Yili Chuanning vs. Shandong Rike Chemical | Yili Chuanning vs. Anhui Jianghuai Automobile | Yili Chuanning vs. Runjian Communication 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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