Correlation Between Ningbo Thermal and Tibet Huayu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Thermal Power and Tibet Huayu Mining, you can compare the effects of market volatilities on Ningbo Thermal and Tibet Huayu 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 Ningbo Thermal with a short position of Tibet Huayu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Thermal and Tibet Huayu.
Diversification Opportunities for Ningbo Thermal and Tibet Huayu
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Tibet is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Thermal Power and Tibet Huayu Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tibet Huayu Mining and Ningbo Thermal 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 Ningbo Thermal Power are associated (or correlated) with Tibet Huayu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tibet Huayu Mining has no effect on the direction of Ningbo Thermal i.e., Ningbo Thermal and Tibet Huayu go up and down completely randomly.
Pair Corralation between Ningbo Thermal and Tibet Huayu
Assuming the 90 days trading horizon Ningbo Thermal Power is expected to under-perform the Tibet Huayu. In addition to that, Ningbo Thermal is 1.15 times more volatile than Tibet Huayu Mining. It trades about -0.33 of its total potential returns per unit of risk. Tibet Huayu Mining is currently generating about -0.09 per unit of volatility. If you would invest 1,328 in Tibet Huayu Mining on October 22, 2024 and sell it today you would lose (52.00) from holding Tibet Huayu Mining or give up 3.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Thermal Power vs. Tibet Huayu Mining
Performance |
| Timeline |
| Ningbo Thermal Power |
| Tibet Huayu Mining |
Ningbo Thermal and Tibet Huayu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Thermal and Tibet Huayu
The main advantage of trading using opposite Ningbo Thermal and Tibet Huayu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Thermal position performs unexpectedly, Tibet Huayu 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 Tibet Huayu will offset losses from the drop in Tibet Huayu's long position.| Ningbo Thermal vs. Cicc Fund Management | Ningbo Thermal vs. Heilongjiang Transport Development | Ningbo Thermal vs. Shanghai Yanpu Metal | Ningbo Thermal vs. Xinjiang Sailing Information |
| Tibet Huayu vs. Hainan Airlines Co | Tibet Huayu vs. Dawning Information Industry | Tibet Huayu vs. Tongding Interconnection Information | Tibet Huayu vs. Hygon Information Technology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |