Correlation Between Jinsanjiang Silicon and Ningbo Tip
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By analyzing existing cross correlation between Jinsanjiang Silicon Material and Ningbo Tip Rubber, you can compare the effects of market volatilities on Jinsanjiang Silicon 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 Jinsanjiang Silicon with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinsanjiang Silicon and Ningbo Tip.
Diversification Opportunities for Jinsanjiang Silicon and Ningbo Tip
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jinsanjiang and Ningbo is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Jinsanjiang Silicon 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 Jinsanjiang Silicon 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 Jinsanjiang Silicon 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 Jinsanjiang Silicon i.e., Jinsanjiang Silicon and Ningbo Tip go up and down completely randomly.
Pair Corralation between Jinsanjiang Silicon and Ningbo Tip
Assuming the 90 days trading horizon Jinsanjiang Silicon Material is expected to generate 1.38 times more return on investment than Ningbo Tip. However, Jinsanjiang Silicon is 1.38 times more volatile than Ningbo Tip Rubber. It trades about 0.07 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about 0.05 per unit of risk. If you would invest 850.00 in Jinsanjiang Silicon Material on November 3, 2024 and sell it today you would earn a total of 232.00 from holding Jinsanjiang Silicon Material or generate 27.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinsanjiang Silicon Material vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Jinsanjiang Silicon |
| Ningbo Tip Rubber |
Jinsanjiang Silicon and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinsanjiang Silicon and Ningbo Tip
The main advantage of trading using opposite Jinsanjiang Silicon and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinsanjiang Silicon 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.| Jinsanjiang Silicon vs. Anhui Shiny Electronic | Jinsanjiang Silicon vs. Success Electronics | Jinsanjiang Silicon vs. Dawning Information Industry | Jinsanjiang Silicon vs. Zhongfu Information |
| Ningbo Tip vs. China Life Insurance | Ningbo Tip vs. National Silicon Industry | Ningbo Tip vs. Shanghai OPM Biosciences | Ningbo Tip vs. Nanhua Bio Medicine |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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