Correlation Between Ningbo Tip and Malion New
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Tip Rubber and Malion New Materials, you can compare the effects of market volatilities on Ningbo Tip and Malion New 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 Malion New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Malion New.
Diversification Opportunities for Ningbo Tip and Malion New
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Malion is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Malion New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malion New Materials 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 Malion New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malion New Materials has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Malion New go up and down completely randomly.
Pair Corralation between Ningbo Tip and Malion New
Assuming the 90 days trading horizon Ningbo Tip is expected to generate 2.7 times less return on investment than Malion New. But when comparing it to its historical volatility, Ningbo Tip Rubber is 1.89 times less risky than Malion New. It trades about 0.14 of its potential returns per unit of risk. Malion New Materials is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 815.00 in Malion New Materials on September 1, 2024 and sell it today you would earn a total of 189.00 from holding Malion New Materials or generate 23.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Malion New Materials
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Malion New Materials |
Ningbo Tip and Malion New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Malion New
The main advantage of trading using opposite Ningbo Tip and Malion New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Malion New 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 Malion New will offset losses from the drop in Malion New's long position.| Ningbo Tip vs. Jinhui Liquor Co | Ningbo Tip vs. Yunnan Xiyi Industrial | Ningbo Tip vs. Western Metal Materials | Ningbo Tip vs. Shenzhen Shenbao Industrial |
| Malion New vs. Leaguer Shenzhen MicroElectronics | Malion New vs. StarPower Semiconductor | Malion New vs. Integrated Electronic Systems | Malion New vs. Epoxy Base Electronic |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |