Correlation Between Aluminum Corp and Ningbo Tip
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By analyzing existing cross correlation between Aluminum Corp of and Ningbo Tip Rubber, you can compare the effects of market volatilities on Aluminum Corp 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 Aluminum Corp with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aluminum Corp and Ningbo Tip.
Diversification Opportunities for Aluminum Corp and Ningbo Tip
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aluminum and Ningbo is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Aluminum Corp of 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 Aluminum Corp 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 Aluminum Corp of 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 Aluminum Corp i.e., Aluminum Corp and Ningbo Tip go up and down completely randomly.
Pair Corralation between Aluminum Corp and Ningbo Tip
Assuming the 90 days trading horizon Aluminum Corp of is expected to generate 0.67 times more return on investment than Ningbo Tip. However, Aluminum Corp of is 1.49 times less risky than Ningbo Tip. It trades about 0.04 of its potential returns per unit of risk. Ningbo Tip Rubber is currently generating about 0.01 per unit of risk. If you would invest 582.00 in Aluminum Corp of on October 16, 2024 and sell it today you would earn a total of 172.00 from holding Aluminum Corp of or generate 29.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aluminum Corp of vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Aluminum Corp |
| Ningbo Tip Rubber |
Aluminum Corp and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aluminum Corp and Ningbo Tip
The main advantage of trading using opposite Aluminum Corp and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aluminum Corp 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.| Aluminum Corp vs. Lander Sports Development | Aluminum Corp vs. Tangel Publishing | Aluminum Corp vs. Qtone Education Group | Aluminum Corp vs. Shuhua Sports Co |
| Ningbo Tip vs. Hefei Metalforming Mach | Ningbo Tip vs. Aluminum Corp of | Ningbo Tip vs. Zhejiang Yongjin Metal | Ningbo Tip vs. Heilongjiang Transport Development |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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