Correlation Between Ningbo Thermal and Xinjiang Tianrun
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By analyzing existing cross correlation between Ningbo Thermal Power and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Ningbo Thermal and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Thermal and Xinjiang Tianrun.
Diversification Opportunities for Ningbo Thermal and Xinjiang Tianrun
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Xinjiang is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Thermal Power and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Ningbo Thermal i.e., Ningbo Thermal and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Ningbo Thermal and Xinjiang Tianrun
Assuming the 90 days trading horizon Ningbo Thermal Power is expected to generate 0.96 times more return on investment than Xinjiang Tianrun. However, Ningbo Thermal Power is 1.04 times less risky than Xinjiang Tianrun. It trades about 0.0 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.05 per unit of risk. If you would invest 425.00 in Ningbo Thermal Power on October 15, 2024 and sell it today you would lose (43.00) from holding Ningbo Thermal Power or give up 10.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Thermal Power vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Ningbo Thermal Power |
| Xinjiang Tianrun Dairy |
Ningbo Thermal and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Thermal and Xinjiang Tianrun
The main advantage of trading using opposite Ningbo Thermal and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Thermal position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Ningbo Thermal vs. Offcn Education Technology | Ningbo Thermal vs. Tangel Publishing | Ningbo Thermal vs. China Publishing Media | Ningbo Thermal vs. Duzhe Publishing Media |
| Xinjiang Tianrun vs. Henan Shuanghui Investment | Xinjiang Tianrun vs. Hunan Investment Group | Xinjiang Tianrun vs. Harbin Hatou Investment | Xinjiang Tianrun vs. Shandong Polymer Biochemicals |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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