Correlation Between Shanghai Action and Ningxia Younglight
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Action Education and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Shanghai Action and Ningxia Younglight 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 Shanghai Action with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Action and Ningxia Younglight.
Diversification Opportunities for Shanghai Action and Ningxia Younglight
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Ningxia is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Action Education and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight and Shanghai Action 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 Shanghai Action Education are associated (or correlated) with Ningxia Younglight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Younglight has no effect on the direction of Shanghai Action i.e., Shanghai Action and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Shanghai Action and Ningxia Younglight
Assuming the 90 days trading horizon Shanghai Action Education is expected to under-perform the Ningxia Younglight. But the stock apears to be less risky and, when comparing its historical volatility, Shanghai Action Education is 1.49 times less risky than Ningxia Younglight. The stock trades about -0.18 of its potential returns per unit of risk. The Ningxia Younglight Chemicals is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Ningxia Younglight Chemicals on August 30, 2024 and sell it today you would earn a total of 128.00 from holding Ningxia Younglight Chemicals or generate 18.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Action Education vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Shanghai Action Education |
| Ningxia Younglight |
Shanghai Action and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Action and Ningxia Younglight
The main advantage of trading using opposite Shanghai Action and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Action position performs unexpectedly, Ningxia Younglight 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 Ningxia Younglight will offset losses from the drop in Ningxia Younglight's long position.| Shanghai Action vs. Biwin Storage Technology | Shanghai Action vs. PetroChina Co Ltd | Shanghai Action vs. Industrial and Commercial | Shanghai Action vs. China Construction Bank |
| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Shandong Gold Mining |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |