Correlation Between Der International and Ningbo Ligong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Der International Home and Ningbo Ligong Online, you can compare the effects of market volatilities on Der International 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 Der International with a short position of Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Der International and Ningbo Ligong.
Diversification Opportunities for Der International and Ningbo Ligong
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Der and Ningbo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Der International Home 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 Der International 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 Der International Home 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 Der International i.e., Der International and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Der International and Ningbo Ligong
Assuming the 90 days trading horizon Der International Home is expected to under-perform the Ningbo Ligong. In addition to that, Der International is 3.34 times more volatile than Ningbo Ligong Online. It trades about -0.03 of its total potential returns per unit of risk. Ningbo Ligong Online is currently generating about -0.07 per unit of volatility. If you would invest 1,348 in Ningbo Ligong Online on September 26, 2024 and sell it today you would lose (33.00) from holding Ningbo Ligong Online or give up 2.45% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Der International Home vs. Ningbo Ligong Online
Performance |
Timeline |
Der International Home |
Ningbo Ligong Online |
Der International and Ningbo Ligong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Der International and Ningbo Ligong
The main advantage of trading using opposite Der International and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Der International 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.Der International vs. Kweichow Moutai Co | Der International vs. Contemporary Amperex Technology | Der International vs. G bits Network Technology | Der International vs. BYD Co Ltd |
Ningbo Ligong vs. Ming Yang Smart | Ningbo Ligong vs. 159681 | Ningbo Ligong vs. 159005 | Ningbo Ligong vs. Loctek Ergonomic Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |