Correlation Between Nancal Energy and Ningbo Ligong
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By analyzing existing cross correlation between Nancal Energy Saving Tech and Ningbo Ligong Online, you can compare the effects of market volatilities on Nancal Energy 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 Nancal Energy with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nancal Energy and Ningbo Ligong.
Diversification Opportunities for Nancal Energy and Ningbo Ligong
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nancal and Ningbo is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Nancal Energy Saving Tech 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 Nancal Energy 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 Nancal Energy Saving Tech 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 Nancal Energy i.e., Nancal Energy and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Nancal Energy and Ningbo Ligong
Assuming the 90 days trading horizon Nancal Energy is expected to generate 1.16 times less return on investment than Ningbo Ligong. In addition to that, Nancal Energy is 1.46 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 1,159 in Ningbo Ligong Online on September 12, 2024 and sell it today you would earn a total of 200.00 from holding Ningbo Ligong Online or generate 17.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nancal Energy Saving Tech vs. Ningbo Ligong Online
Performance |
| Timeline |
| Nancal Energy Saving |
| Ningbo Ligong Online |
Nancal Energy and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nancal Energy and Ningbo Ligong
The main advantage of trading using opposite Nancal Energy and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nancal Energy 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.| Nancal Energy vs. Agricultural Bank of | Nancal Energy vs. Industrial and Commercial | Nancal Energy vs. Bank of China | Nancal Energy vs. PetroChina Co Ltd |
| Ningbo Ligong vs. Agricultural Bank of | Ningbo Ligong vs. Industrial and Commercial | Ningbo Ligong vs. Bank of China | Ningbo Ligong vs. PetroChina 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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