Correlation Between Ye Chiu and Ningbo Ligong
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By analyzing existing cross correlation between Ye Chiu Metal and Ningbo Ligong Online, you can compare the effects of market volatilities on Ye Chiu and Ningbo Ligong 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 Ye Chiu with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Ningbo Ligong.
Diversification Opportunities for Ye Chiu and Ningbo Ligong
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 601388 and Ningbo is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online and Ye Chiu 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 Ye Chiu Metal are associated (or correlated) with Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Ye Chiu i.e., Ye Chiu and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Ye Chiu and Ningbo Ligong
Assuming the 90 days trading horizon Ye Chiu is expected to generate 2.0 times less return on investment than Ningbo Ligong. In addition to that, Ye Chiu is 1.09 times more volatile than Ningbo Ligong Online. It trades about 0.02 of its total potential returns per unit of risk. Ningbo Ligong Online is currently generating about 0.04 per unit of volatility. If you would invest 1,040 in Ningbo Ligong Online on September 19, 2024 and sell it today you would earn a total of 277.00 from holding Ningbo Ligong Online or generate 26.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Ningbo Ligong Online
Performance |
| Timeline |
| Ye Chiu Metal |
| Ningbo Ligong Online |
Ye Chiu and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Ningbo Ligong
The main advantage of trading using opposite Ye Chiu and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu position performs unexpectedly, Ningbo Ligong 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 Ligong will offset losses from the drop in Ningbo Ligong's long position.| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
| Ningbo Ligong vs. Hainan Haiqi Transportation | Ningbo Ligong vs. Zhongshan Broad Ocean Motor | Ningbo Ligong vs. Jiangsu Broadcasting Cable | Ningbo Ligong vs. Ye Chiu Metal |
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 CEOs Directory module to screen CEOs from public companies around the world.
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