Correlation Between Ningbo Tip and City Development
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By analyzing existing cross correlation between Ningbo Tip Rubber and City Development Environment, you can compare the effects of market volatilities on Ningbo Tip and City Development 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 City Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and City Development.
Diversification Opportunities for Ningbo Tip and City Development
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and City is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and City Development Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Development Env 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 City Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Development Env has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and City Development go up and down completely randomly.
Pair Corralation between Ningbo Tip and City Development
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to under-perform the City Development. In addition to that, Ningbo Tip is 2.67 times more volatile than City Development Environment. It trades about -0.17 of its total potential returns per unit of risk. City Development Environment is currently generating about -0.37 per unit of volatility. If you would invest 1,375 in City Development Environment on October 12, 2024 and sell it today you would lose (141.00) from holding City Development Environment or give up 10.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. City Development Environment
Performance |
| Timeline |
| Ningbo Tip Rubber |
| City Development Env |
Ningbo Tip and City Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and City Development
The main advantage of trading using opposite Ningbo Tip and City Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, City Development 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 City Development will offset losses from the drop in City Development's long position.| Ningbo Tip vs. Guilin Seamild Foods | Ningbo Tip vs. Western Metal Materials | Ningbo Tip vs. Chengtun Mining Group | Ningbo Tip vs. Panda Dairy Corp |
| City Development vs. Western Metal Materials | City Development vs. Ningbo Tip Rubber | City Development vs. Chongqing Sulian Plastic | City Development vs. Fuda Alloy Materials |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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