Correlation Between Ningxia Baofeng and Hengli Industrial
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By analyzing existing cross correlation between Ningxia Baofeng Energy and Hengli Industrial Development, you can compare the effects of market volatilities on Ningxia Baofeng and Hengli Industrial 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 Ningxia Baofeng with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Baofeng and Hengli Industrial.
Diversification Opportunities for Ningxia Baofeng and Hengli Industrial
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningxia and Hengli is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Baofeng Energy and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Ningxia Baofeng 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 Ningxia Baofeng Energy are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Ningxia Baofeng i.e., Ningxia Baofeng and Hengli Industrial go up and down completely randomly.
Pair Corralation between Ningxia Baofeng and Hengli Industrial
Assuming the 90 days trading horizon Ningxia Baofeng is expected to generate 2.07 times less return on investment than Hengli Industrial. But when comparing it to its historical volatility, Ningxia Baofeng Energy is 1.65 times less risky than Hengli Industrial. It trades about 0.21 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 206.00 in Hengli Industrial Development on October 23, 2024 and sell it today you would earn a total of 29.00 from holding Hengli Industrial Development or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Baofeng Energy vs. Hengli Industrial Development
Performance |
| Timeline |
| Ningxia Baofeng Energy |
| Hengli Industrial |
Ningxia Baofeng and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Baofeng and Hengli Industrial
The main advantage of trading using opposite Ningxia Baofeng and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Baofeng position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Ningxia Baofeng vs. Gansu Huangtai Wine marketing | Ningxia Baofeng vs. Anhui Gujing Distillery | Ningxia Baofeng vs. Bingo Software Co | Ningxia Baofeng vs. Do Fluoride Chemicals Co |
| Hengli Industrial vs. Miracll Chemicals Co | Hengli Industrial vs. Ningxia Younglight Chemicals | Hengli Industrial vs. Chengtun Mining Group | Hengli Industrial vs. Xizi Clean Energy |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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