Correlation Between Ningbo Tip and Suzhou Xingye
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By analyzing existing cross correlation between Ningbo Tip Rubber and Suzhou Xingye Material, you can compare the effects of market volatilities on Ningbo Tip and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and Suzhou Xingye.
Diversification Opportunities for Ningbo Tip and Suzhou Xingye
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ningbo and Suzhou is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Ningbo Tip and Suzhou Xingye
Assuming the 90 days trading horizon Ningbo Tip is expected to generate 4.71 times less return on investment than Suzhou Xingye. But when comparing it to its historical volatility, Ningbo Tip Rubber is 1.01 times less risky than Suzhou Xingye. It trades about 0.0 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,211 in Suzhou Xingye Material on November 2, 2024 and sell it today you would earn a total of 96.00 from holding Suzhou Xingye Material or generate 7.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Tip Rubber vs. Suzhou Xingye Material
Performance |
| Timeline |
| Ningbo Tip Rubber |
| Suzhou Xingye Material |
Ningbo Tip and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and Suzhou Xingye
The main advantage of trading using opposite Ningbo Tip and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Ningbo Tip vs. China Life Insurance | Ningbo Tip vs. National Silicon Industry | Ningbo Tip vs. Shanghai OPM Biosciences | Ningbo Tip vs. Nanhua Bio Medicine |
| Suzhou Xingye vs. Zhangjiagang Elegant Home | Suzhou Xingye vs. Kangping Technology Co | Suzhou Xingye vs. Vohringer Home Technology | Suzhou Xingye vs. Quectel Wireless Solutions |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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