Correlation Between King Strong and Ningbo Tip
Specify exactly 2 symbols:
By analyzing existing cross correlation between King Strong New Material and Ningbo Tip Rubber, you can compare the effects of market volatilities on King Strong 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 King Strong with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Ningbo Tip.
Diversification Opportunities for King Strong and Ningbo Tip
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King and Ningbo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material 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 King Strong 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 King Strong New Material 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 King Strong i.e., King Strong and Ningbo Tip go up and down completely randomly.
Pair Corralation between King Strong and Ningbo Tip
Assuming the 90 days trading horizon King Strong New Material is expected to generate 0.97 times more return on investment than Ningbo Tip. However, King Strong New Material is 1.03 times less risky than Ningbo Tip. It trades about 0.04 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about 0.0 per unit of risk. If you would invest 1,969 in King Strong New Material on September 3, 2024 and sell it today you would earn a total of 411.00 from holding King Strong New Material or generate 20.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Ningbo Tip Rubber
Performance |
| Timeline |
| King Strong New |
| Ningbo Tip Rubber |
King Strong and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Ningbo Tip
The main advantage of trading using opposite King Strong and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong 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.| King Strong vs. Cultural Investment Holdings | King Strong vs. Gome Telecom Equipment | King Strong vs. Bus Online Co | King Strong vs. Holitech Technology 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 Positions Ratings module to 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.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |