Correlation Between Ningbo Tip and Haima Automobile
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By analyzing existing cross correlation between Ningbo Tip Rubber and Haima Automobile Group, you can compare the effects of market volatilities on Ningbo Tip and Haima Automobile 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 Tip with a short position of Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Haima Automobile.
Diversification Opportunities for Ningbo Tip and Haima Automobile
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Haima is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile and Ningbo Tip 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 Tip Rubber are associated (or correlated) with Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Haima Automobile go up and down completely randomly.
Pair Corralation between Ningbo Tip and Haima Automobile
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to under-perform the Haima Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Tip Rubber is 1.11 times less risky than Haima Automobile. The stock trades about -0.01 of its potential returns per unit of risk. The Haima Automobile Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 444.00 in Haima Automobile Group on September 29, 2024 and sell it today you would lose (2.00) from holding Haima Automobile Group or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Haima Automobile Group
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Haima Automobile |
Ningbo Tip and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Haima Automobile
The main advantage of trading using opposite Ningbo Tip and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Ningbo Tip vs. China Life Insurance | Ningbo Tip vs. Cinda Securities Co | Ningbo Tip vs. Piotech Inc A | Ningbo Tip vs. Dongxing Sec Co |
| Haima Automobile vs. Shenwu Energy Saving | Haima Automobile vs. Peoples Insurance of | Haima Automobile vs. Southern PublishingMedia Co | Haima Automobile vs. Financial Street Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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