Correlation Between Ningbo Tip and Gem Year
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By analyzing existing cross correlation between Ningbo Tip Rubber and Gem Year Industrial Co, you can compare the effects of market volatilities on Ningbo Tip and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Gem Year.
Diversification Opportunities for Ningbo Tip and Gem Year
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ningbo and Gem is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Gem Year go up and down completely randomly.
Pair Corralation between Ningbo Tip and Gem Year
Assuming the 90 days trading horizon Ningbo Tip is expected to generate 18.9 times less return on investment than Gem Year. In addition to that, Ningbo Tip is 1.41 times more volatile than Gem Year Industrial Co. It trades about 0.0 of its total potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.01 per unit of volatility. If you would invest 474.00 in Gem Year Industrial Co on September 5, 2024 and sell it today you would lose (9.00) from holding Gem Year Industrial Co or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Gem Year Industrial Co
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Gem Year Industrial |
Ningbo Tip and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Gem Year
The main advantage of trading using opposite Ningbo Tip and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year'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 |
| Gem Year vs. Ningbo Tip Rubber | Gem Year vs. Shenzhen Centralcon Investment | Gem Year vs. Vanfund Urban Investment | Gem Year vs. Western Metal Materials |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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