Correlation Between Ningbo Tip and Gansu Jiu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ningbo Tip Rubber and Gansu Jiu Steel, you can compare the effects of market volatilities on Ningbo Tip and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Gansu Jiu.
Diversification Opportunities for Ningbo Tip and Gansu Jiu
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ningbo and Gansu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Gansu Jiu go up and down completely randomly.
Pair Corralation between Ningbo Tip and Gansu Jiu
Assuming the 90 days trading horizon Ningbo Tip is expected to generate 12.69 times less return on investment than Gansu Jiu. In addition to that, Ningbo Tip is 1.02 times more volatile than Gansu Jiu Steel. It trades about 0.01 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about 0.07 per unit of volatility. If you would invest 134.00 in Gansu Jiu Steel on September 3, 2024 and sell it today you would earn a total of 32.00 from holding Gansu Jiu Steel or generate 23.88% 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. Gansu Jiu Steel
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Gansu Jiu Steel |
Ningbo Tip and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Gansu Jiu
The main advantage of trading using opposite Ningbo Tip and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Ningbo Tip vs. PetroChina Co Ltd | Ningbo Tip vs. China Mobile Limited | Ningbo Tip vs. Industrial and Commercial | Ningbo Tip vs. China Life Insurance |
| Gansu Jiu vs. Cangzhou Mingzhu Plastic | Gansu Jiu vs. Eastern Communications Co | Gansu Jiu vs. Western Metal Materials | Gansu Jiu 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |