Correlation Between Guotai Epoint and Ningxia Younglight
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By analyzing existing cross correlation between Guotai Epoint Software and Ningxia Younglight Chemicals, you can compare the effects of market volatilities on Guotai Epoint 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 Guotai Epoint with a short position of Ningxia Younglight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Ningxia Younglight.
Diversification Opportunities for Guotai Epoint and Ningxia Younglight
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guotai and Ningxia is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and Ningxia Younglight Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Younglight and Guotai Epoint 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 Guotai Epoint Software 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 Guotai Epoint i.e., Guotai Epoint and Ningxia Younglight go up and down completely randomly.
Pair Corralation between Guotai Epoint and Ningxia Younglight
Assuming the 90 days trading horizon Guotai Epoint Software is expected to generate 0.7 times more return on investment than Ningxia Younglight. However, Guotai Epoint Software is 1.43 times less risky than Ningxia Younglight. It trades about -0.19 of its potential returns per unit of risk. Ningxia Younglight Chemicals is currently generating about -0.31 per unit of risk. If you would invest 3,071 in Guotai Epoint Software on October 25, 2024 and sell it today you would lose (271.00) from holding Guotai Epoint Software or give up 8.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. Ningxia Younglight Chemicals
Performance |
| Timeline |
| Guotai Epoint Software |
| Ningxia Younglight |
Guotai Epoint and Ningxia Younglight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Ningxia Younglight
The main advantage of trading using opposite Guotai Epoint and Ningxia Younglight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint 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.| Guotai Epoint vs. Kweichow Moutai Co | Guotai Epoint vs. NAURA Technology Group | Guotai Epoint vs. APT Medical | Guotai Epoint vs. BYD Co Ltd |
| Ningxia Younglight vs. Zijin Mining Group | Ningxia Younglight vs. Wanhua Chemical Group | Ningxia Younglight vs. Baoshan Iron Steel | Ningxia Younglight vs. Rongsheng Petrochemical Co |
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 Positions Ratings module to 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.
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