Correlation Between HeBei Jinniu and Ningbo Tip
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By analyzing existing cross correlation between HeBei Jinniu Chemical and Ningbo Tip Rubber, you can compare the effects of market volatilities on HeBei Jinniu 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 HeBei Jinniu with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and Ningbo Tip.
Diversification Opportunities for HeBei Jinniu and Ningbo Tip
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HeBei and Ningbo is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical 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 HeBei Jinniu 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 HeBei Jinniu Chemical 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 HeBei Jinniu i.e., HeBei Jinniu and Ningbo Tip go up and down completely randomly.
Pair Corralation between HeBei Jinniu and Ningbo Tip
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 0.73 times more return on investment than Ningbo Tip. However, HeBei Jinniu Chemical is 1.36 times less risky than Ningbo Tip. It trades about 0.01 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 511.00 in HeBei Jinniu Chemical on September 2, 2024 and sell it today you would lose (3.00) from holding HeBei Jinniu Chemical or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeBei Jinniu Chemical vs. Ningbo Tip Rubber
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| Ningbo Tip Rubber |
HeBei Jinniu and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and Ningbo Tip
The main advantage of trading using opposite HeBei Jinniu and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu 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.| HeBei Jinniu vs. Zijin Mining Group | HeBei Jinniu vs. Wanhua Chemical Group | HeBei Jinniu vs. Baoshan Iron Steel | HeBei Jinniu vs. Shandong Gold Mining |
| Ningbo Tip vs. BYD Co Ltd | Ningbo Tip vs. China Mobile Limited | Ningbo Tip vs. Agricultural Bank of | Ningbo Tip vs. Industrial and Commercial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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