Correlation Between Ningbo Tip and Jinling Hotel
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By analyzing existing cross correlation between Ningbo Tip Rubber and Jinling Hotel Corp, you can compare the effects of market volatilities on Ningbo Tip and Jinling Hotel 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 Jinling Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Jinling Hotel.
Diversification Opportunities for Ningbo Tip and Jinling Hotel
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ningbo and Jinling is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Jinling Hotel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinling Hotel Corp 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 Jinling Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinling Hotel Corp has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Jinling Hotel go up and down completely randomly.
Pair Corralation between Ningbo Tip and Jinling Hotel
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 1.6 times more return on investment than Jinling Hotel. However, Ningbo Tip is 1.6 times more volatile than Jinling Hotel Corp. It trades about 0.05 of its potential returns per unit of risk. Jinling Hotel Corp is currently generating about 0.01 per unit of risk. If you would invest 1,275 in Ningbo Tip Rubber on November 28, 2024 and sell it today you would earn a total of 237.00 from holding Ningbo Tip Rubber or generate 18.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Jinling Hotel Corp
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Jinling Hotel Corp |
Ningbo Tip and Jinling Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Jinling Hotel
The main advantage of trading using opposite Ningbo Tip and Jinling Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Jinling Hotel 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 Jinling Hotel will offset losses from the drop in Jinling Hotel's long position.| Ningbo Tip vs. New China Life | Ningbo Tip vs. Ming Yang Smart | Ningbo Tip vs. 159681 | Ningbo Tip vs. 159005 |
| Jinling Hotel vs. Luyin Investment Group | Jinling Hotel vs. Suzhou Mingzhi Technology | Jinling Hotel vs. Vanfund Urban Investment | Jinling Hotel vs. Tieling Newcity Investment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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