Correlation Between Ningbo Tip and Cultural Investment
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By analyzing existing cross correlation between Ningbo Tip Rubber and Cultural Investment Holdings, you can compare the effects of market volatilities on Ningbo Tip and Cultural 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Cultural Investment.
Diversification Opportunities for Ningbo Tip and Cultural Investment
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Cultural is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Cultural Investment go up and down completely randomly.
Pair Corralation between Ningbo Tip and Cultural Investment
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 0.77 times more return on investment than Cultural Investment. However, Ningbo Tip Rubber is 1.29 times less risky than Cultural Investment. It trades about -0.01 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.01 per unit of risk. If you would invest 1,696 in Ningbo Tip Rubber on September 4, 2024 and sell it today you would lose (308.00) from holding Ningbo Tip Rubber or give up 18.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Cultural Investment Holdings
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Cultural Investment |
Ningbo Tip and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Cultural Investment
The main advantage of trading using opposite Ningbo Tip and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Cultural 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 Cultural Investment will offset losses from the drop in Cultural Investment'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 |
| Cultural Investment vs. China State Construction | Cultural Investment vs. Poly Real Estate | Cultural Investment vs. China Vanke Co | Cultural Investment vs. China Merchants Shekou |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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