Correlation Between Tongxing Environmental and Ningbo Jintian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongxing Environmental Protection and Ningbo Jintian Copper, you can compare the effects of market volatilities on Tongxing Environmental and Ningbo Jintian 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 Tongxing Environmental with a short position of Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongxing Environmental and Ningbo Jintian.
Diversification Opportunities for Tongxing Environmental and Ningbo Jintian
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongxing and Ningbo is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tongxing Environmental Protect and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper and Tongxing Environmental 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 Tongxing Environmental Protection are associated (or correlated) with Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Tongxing Environmental i.e., Tongxing Environmental and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Tongxing Environmental and Ningbo Jintian
Assuming the 90 days trading horizon Tongxing Environmental Protection is expected to under-perform the Ningbo Jintian. In addition to that, Tongxing Environmental is 1.52 times more volatile than Ningbo Jintian Copper. It trades about 0.0 of its total potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.0 per unit of volatility. If you would invest 669.00 in Ningbo Jintian Copper on October 28, 2024 and sell it today you would lose (61.00) from holding Ningbo Jintian Copper or give up 9.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongxing Environmental Protect vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Tongxing Environmental |
| Ningbo Jintian Copper |
Tongxing Environmental and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongxing Environmental and Ningbo Jintian
The main advantage of trading using opposite Tongxing Environmental and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongxing Environmental position performs unexpectedly, Ningbo Jintian 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 Jintian will offset losses from the drop in Ningbo Jintian's long position.| Tongxing Environmental vs. Industrial and Commercial | Tongxing Environmental vs. Agricultural Bank of | Tongxing Environmental vs. China Construction Bank | Tongxing Environmental vs. Bank of China |
| Ningbo Jintian vs. Zijin Mining Group | Ningbo Jintian vs. Wanhua Chemical Group | Ningbo Jintian vs. Baoshan Iron Steel | Ningbo Jintian vs. Shandong Gold Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Transaction History View history of all your transactions and understand their impact on performance |