Correlation Between Chengdu Xingrong and Ningbo Tip
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Xingrong Investment and Ningbo Tip Rubber, you can compare the effects of market volatilities on Chengdu Xingrong and Ningbo Tip 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 Chengdu Xingrong with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Ningbo Tip.
Diversification Opportunities for Chengdu Xingrong and Ningbo Tip
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chengdu and Ningbo is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Ningbo Tip Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tip Rubber and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Ningbo Tip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tip Rubber has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Ningbo Tip go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Ningbo Tip
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.56 times more return on investment than Ningbo Tip. However, Chengdu Xingrong Investment is 1.78 times less risky than Ningbo Tip. It trades about 0.06 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about 0.01 per unit of risk. If you would invest 478.00 in Chengdu Xingrong Investment on October 18, 2024 and sell it today you would earn a total of 234.00 from holding Chengdu Xingrong Investment or generate 48.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Ningbo Tip Rubber |
Chengdu Xingrong and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Ningbo Tip
The main advantage of trading using opposite Chengdu Xingrong and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Ningbo Tip 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 Tip will offset losses from the drop in Ningbo Tip's long position.| Chengdu Xingrong vs. Changjiang Jinggong Steel | Chengdu Xingrong vs. Hangzhou Guotai Environmental | Chengdu Xingrong vs. Tonghua Grape Wine | Chengdu Xingrong vs. Yindu Kitchen Equipment |
| Ningbo Tip vs. Metro Investment Development | Ningbo Tip vs. Tieling Newcity Investment | Ningbo Tip vs. Chengdu Xingrong Investment | Ningbo Tip vs. Hunan Investment Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |