Correlation Between Ningbo Jintian and Xizi Clean
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By analyzing existing cross correlation between Ningbo Jintian Copper and Xizi Clean Energy, you can compare the effects of market volatilities on Ningbo Jintian and Xizi Clean 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 Jintian with a short position of Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Xizi Clean.
Diversification Opportunities for Ningbo Jintian and Xizi Clean
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ningbo and Xizi is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy and Ningbo Jintian 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 Jintian Copper are associated (or correlated) with Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Ningbo Jintian i.e., Ningbo Jintian and Xizi Clean go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Xizi Clean
Assuming the 90 days trading horizon Ningbo Jintian Copper is expected to under-perform the Xizi Clean. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Jintian Copper is 1.06 times less risky than Xizi Clean. The stock trades about -0.01 of its potential returns per unit of risk. The Xizi Clean Energy is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,213 in Xizi Clean Energy on December 1, 2024 and sell it today you would earn a total of 18.00 from holding Xizi Clean Energy or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. Xizi Clean Energy
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Xizi Clean Energy |
Ningbo Jintian and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Xizi Clean
The main advantage of trading using opposite Ningbo Jintian and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's long position.| Ningbo Jintian vs. Western Metal Materials | Ningbo Jintian vs. GRIPM Advanced Materials | Ningbo Jintian vs. Sportsoul Co Ltd | Ningbo Jintian vs. Hengerda New Materials |
| Xizi Clean vs. Shenzhen SDG Information | Xizi Clean vs. Hygon Information Technology | Xizi Clean vs. SI TECH Information Technology | Xizi Clean vs. Sportsoul Co Ltd |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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