Correlation Between Ningbo Tip and GRIPM Advanced
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By analyzing existing cross correlation between Ningbo Tip Rubber and GRIPM Advanced Materials, you can compare the effects of market volatilities on Ningbo Tip and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Tip and GRIPM Advanced.
Diversification Opportunities for Ningbo Tip and GRIPM Advanced
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and GRIPM is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Tip Rubber and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Ningbo Tip i.e., Ningbo Tip and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Ningbo Tip and GRIPM Advanced
Assuming the 90 days trading horizon Ningbo Tip Rubber is expected to generate 0.81 times more return on investment than GRIPM Advanced. However, Ningbo Tip Rubber is 1.23 times less risky than GRIPM Advanced. It trades about 0.03 of its potential returns per unit of risk. GRIPM Advanced Materials is currently generating about 0.01 per unit of risk. If you would invest 1,295 in Ningbo Tip Rubber on September 1, 2024 and sell it today you would earn a total of 98.00 from holding Ningbo Tip Rubber or generate 7.57% 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. GRIPM Advanced Materials
Performance |
| Timeline |
| Ningbo Tip Rubber |
| GRIPM Advanced Materials |
Ningbo Tip and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Tip and GRIPM Advanced
The main advantage of trading using opposite Ningbo Tip and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Tip position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced's long position.| Ningbo Tip vs. Jinhui Liquor Co | Ningbo Tip vs. Yunnan Xiyi Industrial | Ningbo Tip vs. Western Metal Materials | Ningbo Tip vs. Shenzhen Shenbao Industrial |
| GRIPM Advanced vs. Chongqing Shunbo Aluminum | GRIPM Advanced vs. ZYF Lopsking Aluminum | GRIPM Advanced vs. Guangzhou Tinci Materials | GRIPM Advanced vs. Chahua Modern Housewares |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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