Correlation Between Kunwu Jiuding and Ningbo Tip
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Ningbo Tip Rubber, you can compare the effects of market volatilities on Kunwu Jiuding 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 Kunwu Jiuding with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Ningbo Tip.
Diversification Opportunities for Kunwu Jiuding and Ningbo Tip
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kunwu and Ningbo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding 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 Kunwu Jiuding 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 Kunwu Jiuding 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 Kunwu Jiuding i.e., Kunwu Jiuding and Ningbo Tip go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Ningbo Tip
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to generate 1.05 times more return on investment than Ningbo Tip. However, Kunwu Jiuding is 1.05 times more volatile than Ningbo Tip Rubber. It trades about -0.06 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about -0.28 per unit of risk. If you would invest 1,601 in Kunwu Jiuding Investment on October 16, 2024 and sell it today you would lose (93.00) from holding Kunwu Jiuding Investment or give up 5.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Ningbo Tip Rubber |
Kunwu Jiuding and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Ningbo Tip
The main advantage of trading using opposite Kunwu Jiuding and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding 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.| Kunwu Jiuding vs. Heilongjiang Transport Development | Kunwu Jiuding vs. CITIC Metal Co | Kunwu Jiuding vs. Hubeiyichang Transportation Group | Kunwu Jiuding vs. China Sports Industry |
| Ningbo Tip vs. Hefei Metalforming Mach | Ningbo Tip vs. Aluminum Corp of | Ningbo Tip vs. Zhejiang Yongjin Metal | Ningbo Tip vs. Heilongjiang Transport Development |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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