Correlation Between Hefei Metalforming and Ningbo Tip
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By analyzing existing cross correlation between Hefei Metalforming Mach and Ningbo Tip Rubber, you can compare the effects of market volatilities on Hefei Metalforming 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 Hefei Metalforming with a short position of Ningbo Tip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and Ningbo Tip.
Diversification Opportunities for Hefei Metalforming and Ningbo Tip
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and Ningbo is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach 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 Hefei Metalforming 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 Hefei Metalforming Mach 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 Hefei Metalforming i.e., Hefei Metalforming and Ningbo Tip go up and down completely randomly.
Pair Corralation between Hefei Metalforming and Ningbo Tip
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to generate 1.01 times more return on investment than Ningbo Tip. However, Hefei Metalforming is 1.01 times more volatile than Ningbo Tip Rubber. It trades about 0.03 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 637.00 in Hefei Metalforming Mach on October 16, 2024 and sell it today you would earn a total of 82.00 from holding Hefei Metalforming Mach or generate 12.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. Ningbo Tip Rubber
Performance |
| Timeline |
| Hefei Metalforming Mach |
| Ningbo Tip Rubber |
Hefei Metalforming and Ningbo Tip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and Ningbo Tip
The main advantage of trading using opposite Hefei Metalforming and Ningbo Tip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming 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.| Hefei Metalforming vs. Biwin Storage Technology | Hefei Metalforming vs. PetroChina Co Ltd | Hefei Metalforming vs. Industrial and Commercial | Hefei Metalforming vs. China Construction Bank |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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