Correlation Between Ningbo Tip and Tianshan Aluminum
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By analyzing existing cross correlation between Ningbo Tip Rubber and Tianshan Aluminum Group, you can compare the effects of market volatilities on Ningbo Tip and Tianshan Aluminum 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 Tianshan Aluminum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Tianshan Aluminum.
Diversification Opportunities for Ningbo Tip and Tianshan Aluminum
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Tianshan is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Tianshan Aluminum Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshan Aluminum 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 Tianshan Aluminum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshan Aluminum has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Tianshan Aluminum go up and down completely randomly.
Pair Corralation between Ningbo Tip and Tianshan Aluminum
Assuming the 90 days trading horizon Ningbo Tip is expected to generate 1.02 times less return on investment than Tianshan Aluminum. In addition to that, Ningbo Tip is 1.34 times more volatile than Tianshan Aluminum Group. It trades about 0.01 of its total potential returns per unit of risk. Tianshan Aluminum Group is currently generating about 0.01 per unit of volatility. If you would invest 835.00 in Tianshan Aluminum Group on October 11, 2024 and sell it today you would lose (35.00) from holding Tianshan Aluminum Group or give up 4.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Tianshan Aluminum Group
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Tianshan Aluminum |
Ningbo Tip and Tianshan Aluminum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Tianshan Aluminum
The main advantage of trading using opposite Ningbo Tip and Tianshan Aluminum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Tianshan Aluminum 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 Tianshan Aluminum will offset losses from the drop in Tianshan Aluminum's long position.| Ningbo Tip vs. Suzhou Oriental Semiconductor | Ningbo Tip vs. Yuanjie Semiconductor Technology | Ningbo Tip vs. Semiconductor Manufacturing Intl | Ningbo Tip vs. Sichuan Fulin Transportation |
| Tianshan Aluminum vs. Linewell Software Co | Tianshan Aluminum vs. Jiujiang Shanshui Technology | Tianshan Aluminum vs. Keeson Technology Corp | Tianshan Aluminum vs. Ningbo Tip Rubber |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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