Correlation Between Ningbo Tip and Emdoor Information
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By analyzing existing cross correlation between Ningbo Tip Rubber and Emdoor Information Co, you can compare the effects of market volatilities on Ningbo Tip and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Emdoor Information.
Diversification Opportunities for Ningbo Tip and Emdoor Information
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Emdoor is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Emdoor Information go up and down completely randomly.
Pair Corralation between Ningbo Tip and Emdoor Information
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 0.53 times more return on investment than Emdoor Information. However, Ningbo Tip Rubber is 1.9 times less risky than Emdoor Information. It trades about 0.1 of its potential returns per unit of risk. Emdoor Information Co is currently generating about -0.16 per unit of risk. If you would invest 1,253 in Ningbo Tip Rubber on November 2, 2024 and sell it today you would earn a total of 53.00 from holding Ningbo Tip Rubber or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Emdoor Information Co
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Emdoor Information |
Ningbo Tip and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Emdoor Information
The main advantage of trading using opposite Ningbo Tip and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| Ningbo Tip vs. Kweichow Moutai Co | Ningbo Tip vs. Jiangsu Pacific Quartz | Ningbo Tip vs. Shenzhen Transsion Holdings | Ningbo Tip vs. Beijing Roborock Technology |
| Emdoor Information vs. Wuhan Hvsen Biotechnology | Emdoor Information vs. Jinhe Biotechnology Co | Emdoor Information vs. Chison Medical Technologies | Emdoor Information vs. Sino Medical Sciences |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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