Correlation Between Ningbo Construction and Shandong Gold
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By analyzing existing cross correlation between Ningbo Construction Co and Shandong Gold Mining, you can compare the effects of market volatilities on Ningbo Construction and Shandong Gold 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 Construction with a short position of Shandong Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Construction and Shandong Gold.
Diversification Opportunities for Ningbo Construction and Shandong Gold
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Shandong is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Construction Co and Shandong Gold Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Gold Mining and Ningbo Construction 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 Construction Co are associated (or correlated) with Shandong Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Gold Mining has no effect on the direction of Ningbo Construction i.e., Ningbo Construction and Shandong Gold go up and down completely randomly.
Pair Corralation between Ningbo Construction and Shandong Gold
Assuming the 90 days trading horizon Ningbo Construction Co is expected to generate 1.21 times more return on investment than Shandong Gold. However, Ningbo Construction is 1.21 times more volatile than Shandong Gold Mining. It trades about 0.0 of its potential returns per unit of risk. Shandong Gold Mining is currently generating about 0.0 per unit of risk. If you would invest 497.00 in Ningbo Construction Co on August 29, 2024 and sell it today you would lose (39.00) from holding Ningbo Construction Co or give up 7.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Construction Co vs. Shandong Gold Mining
Performance |
| Timeline |
| Ningbo Construction |
| Shandong Gold Mining |
Ningbo Construction and Shandong Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Construction and Shandong Gold
The main advantage of trading using opposite Ningbo Construction and Shandong Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Construction position performs unexpectedly, Shandong Gold 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 Shandong Gold will offset losses from the drop in Shandong Gold's long position.| Ningbo Construction vs. Ming Yang Smart | Ningbo Construction vs. 159681 | Ningbo Construction vs. 159005 | Ningbo Construction vs. Loctek Ergonomic Technology |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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