Correlation Between Ningbo Tip and Keda Clean
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By analyzing existing cross correlation between Ningbo Tip Rubber and Keda Clean Energy, you can compare the effects of market volatilities on Ningbo Tip and Keda Clean 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 Keda Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Keda Clean.
Diversification Opportunities for Ningbo Tip and Keda Clean
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ningbo and Keda is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Keda Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keda Clean Energy 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 Keda Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keda Clean Energy has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Keda Clean go up and down completely randomly.
Pair Corralation between Ningbo Tip and Keda Clean
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 1.62 times more return on investment than Keda Clean. However, Ningbo Tip is 1.62 times more volatile than Keda Clean Energy. It trades about 0.28 of its potential returns per unit of risk. Keda Clean Energy is currently generating about 0.18 per unit of risk. If you would invest 1,180 in Ningbo Tip Rubber on November 6, 2024 and sell it today you would earn a total of 126.00 from holding Ningbo Tip Rubber or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Keda Clean Energy
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Keda Clean Energy |
Ningbo Tip and Keda Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Keda Clean
The main advantage of trading using opposite Ningbo Tip and Keda Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Keda Clean 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 Keda Clean will offset losses from the drop in Keda Clean's long position.| Ningbo Tip vs. Time Publishing and | Ningbo Tip vs. Hangzhou Arcvideo Technology | Ningbo Tip vs. Shanghai Action Education | Ningbo Tip vs. Iat Automobile Technology |
| Keda Clean vs. Tongxing Environmental Protection | Keda Clean vs. Jiugui Liquor Co | Keda Clean vs. Zhengzhou Coal Mining | Keda Clean vs. Guangdong Liantai Environmental |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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