Correlation Between Ningbo Tip and Metro Investment
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By analyzing existing cross correlation between Ningbo Tip Rubber and Metro Investment Development, you can compare the effects of market volatilities on Ningbo Tip and Metro Investment 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 Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Metro Investment.
Diversification Opportunities for Ningbo Tip and Metro Investment
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Metro is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev 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 Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Metro Investment go up and down completely randomly.
Pair Corralation between Ningbo Tip and Metro Investment
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 1.08 times more return on investment than Metro Investment. However, Ningbo Tip is 1.08 times more volatile than Metro Investment Development. It trades about 0.1 of its potential returns per unit of risk. Metro Investment Development is currently generating about -0.26 per unit of risk. If you would invest 1,253 in Ningbo Tip Rubber on November 3, 2024 and sell it today you would earn a total of 53.00 from holding Ningbo Tip Rubber or generate 4.23% 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. Metro Investment Development
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Metro Investment Dev |
Ningbo Tip and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Metro Investment
The main advantage of trading using opposite Ningbo Tip and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment's long position.| Ningbo Tip vs. Industrial and Commercial | Ningbo Tip vs. Agricultural Bank of | Ningbo Tip vs. China Construction Bank | Ningbo Tip vs. Bank of China |
| Metro Investment vs. HaiXin Foods Co | Metro Investment vs. De Rucci Healthy | Metro Investment vs. Yankershop Food Co | Metro Investment vs. Guosheng Financial Holding |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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