Correlation Between Zhongtong Guomai and Ningbo Ligong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongtong Guomai Communication and Ningbo Ligong Online, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Ningbo Ligong.
Diversification Opportunities for Zhongtong Guomai and Ningbo Ligong
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zhongtong and Ningbo is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Ningbo Ligong
Assuming the 90 days trading horizon Zhongtong Guomai is expected to generate 2.62 times less return on investment than Ningbo Ligong. In addition to that, Zhongtong Guomai is 1.32 times more volatile than Ningbo Ligong Online. It trades about 0.01 of its total potential returns per unit of risk. Ningbo Ligong Online is currently generating about 0.05 per unit of volatility. 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 | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongtong Guomai Communication vs. Ningbo Ligong Online
Performance |
Timeline |
Zhongtong Guomai Com |
Ningbo Ligong Online |
Zhongtong Guomai and Ningbo Ligong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongtong Guomai and Ningbo Ligong
The main advantage of trading using opposite Zhongtong Guomai and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.Zhongtong Guomai vs. Kweichow Moutai Co | Zhongtong Guomai vs. Shenzhen Mindray Bio Medical | Zhongtong Guomai vs. Jiangsu Pacific Quartz | Zhongtong Guomai vs. G bits Network Technology |
Ningbo Ligong vs. Markor International Home | Ningbo Ligong vs. Guangdong Marubi Biotechnology | Ningbo Ligong vs. Xiamen Goldenhome Co | Ningbo Ligong vs. Der International Home |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |