Correlation Between Ningbo Tip and Jinsanjiang Silicon
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By analyzing existing cross correlation between Ningbo Tip Rubber and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Ningbo Tip and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Jinsanjiang Silicon.
Diversification Opportunities for Ningbo Tip and Jinsanjiang Silicon
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ningbo and Jinsanjiang is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Ningbo Tip and Jinsanjiang Silicon
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 0.6 times more return on investment than Jinsanjiang Silicon. However, Ningbo Tip Rubber is 1.66 times less risky than Jinsanjiang Silicon. It trades about 0.1 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about -0.1 per unit of risk. If you would invest 1,256 in Ningbo Tip Rubber on October 22, 2024 and sell it today you would earn a total of 71.00 from holding Ningbo Tip Rubber or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Jinsanjiang Silicon |
Ningbo Tip and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Jinsanjiang Silicon
The main advantage of trading using opposite Ningbo Tip and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon's long position.| Ningbo Tip vs. BTG Hotels Group | Ningbo Tip vs. Uxi Unicomp Technology | Ningbo Tip vs. Ningbo Fangzheng Automobile | Ningbo Tip vs. Huatian Hotel Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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