Correlation Between Chengtun Mining and Ningbo Tip
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By analyzing existing cross correlation between Chengtun Mining Group and Ningbo Tip Rubber, you can compare the effects of market volatilities on Chengtun Mining 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 Chengtun Mining with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Ningbo Tip.
Diversification Opportunities for Chengtun Mining and Ningbo Tip
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chengtun and Ningbo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group 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 Chengtun Mining 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 Chengtun Mining Group 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 Chengtun Mining i.e., Chengtun Mining and Ningbo Tip go up and down completely randomly.
Pair Corralation between Chengtun Mining and Ningbo Tip
Assuming the 90 days trading horizon Chengtun Mining Group is expected to generate 0.52 times more return on investment than Ningbo Tip. However, Chengtun Mining Group is 1.93 times less risky than Ningbo Tip. It trades about -0.02 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about -0.17 per unit of risk. If you would invest 494.00 in Chengtun Mining Group on October 12, 2024 and sell it today you would lose (6.00) from holding Chengtun Mining Group or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Chengtun Mining Group |
| Ningbo Tip Rubber |
Chengtun Mining and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Ningbo Tip
The main advantage of trading using opposite Chengtun Mining and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining 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.| Chengtun Mining vs. Chongqing Changan Automobile | Chengtun Mining vs. Iat Automobile Technology | Chengtun Mining vs. Shenzhen Zhongzhuang Construction | Chengtun Mining vs. Hongrun Construction Group |
| Ningbo Tip vs. Guilin Seamild Foods | Ningbo Tip vs. Western Metal Materials | Ningbo Tip vs. Chengtun Mining Group | Ningbo Tip vs. Panda Dairy Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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