Correlation Between Ningxia Younglight and Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningxia Younglight Chemicals and Industrial and Commercial, you can compare the effects of market volatilities on Ningxia Younglight and Industrial 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 Ningxia Younglight with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Younglight and Industrial.
Diversification Opportunities for Ningxia Younglight and Industrial
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningxia and Industrial is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Younglight Chemicals and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Ningxia Younglight 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 Ningxia Younglight Chemicals are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Ningxia Younglight i.e., Ningxia Younglight and Industrial go up and down completely randomly.
Pair Corralation between Ningxia Younglight and Industrial
Assuming the 90 days trading horizon Ningxia Younglight Chemicals is expected to generate 2.77 times more return on investment than Industrial. However, Ningxia Younglight is 2.77 times more volatile than Industrial and Commercial. It trades about 0.19 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.13 per unit of risk. If you would invest 624.00 in Ningxia Younglight Chemicals on September 25, 2024 and sell it today you would earn a total of 314.00 from holding Ningxia Younglight Chemicals or generate 50.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ningxia Younglight Chemicals vs. Industrial and Commercial
Performance |
Timeline |
Ningxia Younglight |
Industrial and Commercial |
Ningxia Younglight and Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ningxia Younglight and Industrial
The main advantage of trading using opposite Ningxia Younglight and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Younglight position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.Ningxia Younglight vs. King Strong New Material | Ningxia Younglight vs. Sinosteel Luonai Materials | Ningxia Younglight vs. Xinke Material | Ningxia Younglight vs. Western Metal Materials |
Industrial vs. Ningxia Younglight Chemicals | Industrial vs. Sanbo Hospital Management | Industrial vs. China Asset Management | Industrial vs. Huaxia Fund Management |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |