Correlation Between Wuxi Lead and Ningbo Tip
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuxi Lead Auto and Ningbo Tip Rubber, you can compare the effects of market volatilities on Wuxi Lead 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 Wuxi Lead with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuxi Lead and Ningbo Tip.
Diversification Opportunities for Wuxi Lead and Ningbo Tip
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuxi and Ningbo is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Wuxi Lead Auto 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 Wuxi Lead 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 Wuxi Lead Auto 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 Wuxi Lead i.e., Wuxi Lead and Ningbo Tip go up and down completely randomly.
Pair Corralation between Wuxi Lead and Ningbo Tip
Assuming the 90 days trading horizon Wuxi Lead Auto is expected to under-perform the Ningbo Tip. In addition to that, Wuxi Lead is 1.03 times more volatile than Ningbo Tip Rubber. It trades about -0.02 of its total potential returns per unit of risk. Ningbo Tip Rubber is currently generating about 0.0 per unit of volatility. If you would invest 1,688 in Ningbo Tip Rubber on September 3, 2024 and sell it today you would lose (295.00) from holding Ningbo Tip Rubber or give up 17.48% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Wuxi Lead Auto vs. Ningbo Tip Rubber
Performance |
Timeline |
Wuxi Lead Auto |
Ningbo Tip Rubber |
Wuxi Lead and Ningbo Tip Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wuxi Lead and Ningbo Tip
The main advantage of trading using opposite Wuxi Lead and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuxi Lead 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.Wuxi Lead vs. Zhongtong Guomai Communication | Wuxi Lead vs. Shandong Huifa Foodstuff | Wuxi Lead vs. Shantou Wanshun Package | Wuxi Lead vs. Sunwave Communications Co |
Ningbo Tip vs. PetroChina Co Ltd | Ningbo Tip vs. China Mobile Limited | Ningbo Tip vs. Industrial and Commercial | Ningbo Tip vs. China Life Insurance |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Stocks Directory Find actively traded stocks across global markets | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |