Correlation Between Ningxia Building and Tianjin Pengling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningxia Building Materials and Tianjin Pengling Rubber, you can compare the effects of market volatilities on Ningxia Building and Tianjin Pengling 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 Ningxia Building with a short position of Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningxia Building and Tianjin Pengling.
Diversification Opportunities for Ningxia Building and Tianjin Pengling
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningxia and Tianjin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ningxia Building Materials and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber and Ningxia Building 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 Ningxia Building Materials are associated (or correlated) with Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of Ningxia Building i.e., Ningxia Building and Tianjin Pengling go up and down completely randomly.
Pair Corralation between Ningxia Building and Tianjin Pengling
Assuming the 90 days trading horizon Ningxia Building is expected to generate 1.46 times less return on investment than Tianjin Pengling. In addition to that, Ningxia Building is 1.04 times more volatile than Tianjin Pengling Rubber. It trades about 0.18 of its total potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about 0.27 per unit of volatility. If you would invest 477.00 in Tianjin Pengling Rubber on November 28, 2024 and sell it today you would earn a total of 37.00 from holding Tianjin Pengling Rubber or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningxia Building Materials vs. Tianjin Pengling Rubber
Performance |
| Timeline |
| Ningxia Building Mat |
| Tianjin Pengling Rubber |
Ningxia Building and Tianjin Pengling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningxia Building and Tianjin Pengling
The main advantage of trading using opposite Ningxia Building and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningxia Building position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling's long position.| Ningxia Building vs. Zijin Mining Group | Ningxia Building vs. Wanhua Chemical Group | Ningxia Building vs. Baoshan Iron Steel | Ningxia Building vs. Shandong Gold Mining |
| Tianjin Pengling vs. Industrial and Commercial | Tianjin Pengling vs. China Construction Bank | Tianjin Pengling vs. Agricultural Bank of | Tianjin Pengling vs. Bank of China |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |