Correlation Between Ningbo Ligong and Juewei Food
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By analyzing existing cross correlation between Ningbo Ligong Online and Juewei Food Co, you can compare the effects of market volatilities on Ningbo Ligong and Juewei Food 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 Ningbo Ligong with a short position of Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Ligong and Juewei Food.
Diversification Opportunities for Ningbo Ligong and Juewei Food
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ningbo and Juewei is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Ligong Online and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food and Ningbo Ligong 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 Ningbo Ligong Online are associated (or correlated) with Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Ningbo Ligong i.e., Ningbo Ligong and Juewei Food go up and down completely randomly.
Pair Corralation between Ningbo Ligong and Juewei Food
Assuming the 90 days trading horizon Ningbo Ligong Online is expected to generate 0.89 times more return on investment than Juewei Food. However, Ningbo Ligong Online is 1.12 times less risky than Juewei Food. It trades about 0.05 of its potential returns per unit of risk. Juewei Food Co is currently generating about -0.07 per unit of risk. If you would invest 852.00 in Ningbo Ligong Online on September 25, 2024 and sell it today you would earn a total of 450.00 from holding Ningbo Ligong Online or generate 52.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ningbo Ligong Online vs. Juewei Food Co
Performance |
Timeline |
Ningbo Ligong Online |
Juewei Food |
Ningbo Ligong and Juewei Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ningbo Ligong and Juewei Food
The main advantage of trading using opposite Ningbo Ligong and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Ligong position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food's long position.Ningbo Ligong vs. Markor International Home | Ningbo Ligong vs. Guangdong Marubi Biotechnology | Ningbo Ligong vs. Xiamen Goldenhome Co | Ningbo Ligong vs. Der International Home |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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