Correlation Between Gem Year and Ningbo Tip
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By analyzing existing cross correlation between Gem Year Industrial Co and Ningbo Tip Rubber, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Ningbo Tip.
Diversification Opportunities for Gem Year and Ningbo Tip
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gem and Ningbo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co 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 Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Ningbo Tip go up and down completely randomly.
Pair Corralation between Gem Year and Ningbo Tip
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to under-perform the Ningbo Tip. But the stock apears to be less risky and, when comparing its historical volatility, Gem Year Industrial Co is 1.53 times less risky than Ningbo Tip. The stock trades about -0.05 of its potential returns per unit of risk. The Ningbo Tip Rubber is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,251 in Ningbo Tip Rubber on September 5, 2024 and sell it today you would earn a total of 137.00 from holding Ningbo Tip Rubber or generate 10.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Gem Year Industrial |
| Ningbo Tip Rubber |
Gem Year and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Ningbo Tip
The main advantage of trading using opposite Gem Year and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Ningbo Tip Rubber | Gem Year vs. Shenzhen Centralcon Investment | Gem Year vs. Vanfund Urban Investment | Gem Year vs. Western Metal Materials |
| Ningbo Tip vs. Cultural Investment Holdings | Ningbo Tip vs. Gome Telecom Equipment | Ningbo Tip vs. Bus Online Co | Ningbo Tip vs. Holitech Technology Co |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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