Correlation Between Ningbo Tip and Zhongshan Public
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By analyzing existing cross correlation between Ningbo Tip Rubber and Zhongshan Public Utilities, you can compare the effects of market volatilities on Ningbo Tip and Zhongshan Public 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 Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Zhongshan Public.
Diversification Opportunities for Ningbo Tip and Zhongshan Public
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Zhongshan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti 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 Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Zhongshan Public go up and down completely randomly.
Pair Corralation between Ningbo Tip and Zhongshan Public
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 1.61 times more return on investment than Zhongshan Public. However, Ningbo Tip is 1.61 times more volatile than Zhongshan Public Utilities. It trades about 0.1 of its potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.09 per unit of risk. If you would invest 1,379 in Ningbo Tip Rubber on September 14, 2024 and sell it today you would earn a total of 70.00 from holding Ningbo Tip Rubber or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Zhongshan Public Uti |
Ningbo Tip and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Zhongshan Public
The main advantage of trading using opposite Ningbo Tip and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| Ningbo Tip vs. BeiGene | Ningbo Tip vs. Kweichow Moutai Co | Ningbo Tip vs. Beijing Roborock Technology | Ningbo Tip vs. G bits Network Technology |
| Zhongshan Public vs. Biwin Storage Technology | Zhongshan Public vs. PetroChina Co Ltd | Zhongshan Public vs. Industrial and Commercial | Zhongshan Public vs. China Construction Bank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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