Correlation Between Ningbo Tip and Sany Heavy
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By analyzing existing cross correlation between Ningbo Tip Rubber and Sany Heavy Industry, you can compare the effects of market volatilities on Ningbo Tip and Sany Heavy 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 Sany Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Sany Heavy.
Diversification Opportunities for Ningbo Tip and Sany Heavy
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Sany is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Sany Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sany Heavy Industry 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 Sany Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sany Heavy Industry has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Sany Heavy go up and down completely randomly.
Pair Corralation between Ningbo Tip and Sany Heavy
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 1.35 times more return on investment than Sany Heavy. However, Ningbo Tip is 1.35 times more volatile than Sany Heavy Industry. It trades about 0.06 of its potential returns per unit of risk. Sany Heavy Industry is currently generating about -0.13 per unit of risk. If you would invest 1,309 in Ningbo Tip Rubber on September 5, 2024 and sell it today you would earn a total of 79.00 from holding Ningbo Tip Rubber or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Sany Heavy Industry
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Sany Heavy Industry |
Ningbo Tip and Sany Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Sany Heavy
The main advantage of trading using opposite Ningbo Tip and Sany Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Sany Heavy 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 Sany Heavy will offset losses from the drop in Sany Heavy's long position.| Ningbo Tip vs. Cultural Investment Holdings | Ningbo Tip vs. Gome Telecom Equipment | Ningbo Tip vs. Bus Online Co | Ningbo Tip vs. Holitech Technology Co |
| Sany Heavy vs. Zoje Resources Investment | Sany Heavy vs. Jointo Energy Investment | Sany Heavy vs. Jiugui Liquor Co | Sany Heavy vs. Tieling Newcity Investment |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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