Correlation Between Hainan Mining and Ningbo Ligong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hainan Mining Co and Ningbo Ligong Online, you can compare the effects of market volatilities on Hainan Mining 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 Hainan Mining with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hainan Mining and Ningbo Ligong.
Diversification Opportunities for Hainan Mining and Ningbo Ligong
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hainan and Ningbo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Hainan Mining Co 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 Hainan Mining 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 Hainan Mining Co 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 Hainan Mining i.e., Hainan Mining and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Hainan Mining and Ningbo Ligong
Assuming the 90 days trading horizon Hainan Mining Co is expected to under-perform the Ningbo Ligong. But the stock apears to be less risky and, when comparing its historical volatility, Hainan Mining Co is 1.56 times less risky than Ningbo Ligong. The stock trades about -0.26 of its potential returns per unit of risk. The Ningbo Ligong Online is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,302 in Ningbo Ligong Online on October 23, 2024 and sell it today you would lose (30.00) from holding Ningbo Ligong Online or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hainan Mining Co vs. Ningbo Ligong Online
Performance |
| Timeline |
| Hainan Mining |
| Ningbo Ligong Online |
Hainan Mining and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hainan Mining and Ningbo Ligong
The main advantage of trading using opposite Hainan Mining and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hainan Mining 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.| Hainan Mining vs. Dongfeng Automobile Co | Hainan Mining vs. Central Plains Environment | Hainan Mining vs. Fujian Nanwang Environment | Hainan Mining vs. Baoshan Iron Steel |
| Ningbo Ligong vs. Ming Yang Smart | Ningbo Ligong vs. 159681 | Ningbo Ligong vs. 159005 | Ningbo Ligong vs. Loctek Ergonomic Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |